Correlation Between Gaztransport Technigaz and OPERA SOFTWARE

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Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and OPERA SOFTWARE at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Gaztransport Technigaz and OPERA SOFTWARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaztransport Technigaz SA and OPERA SOFTWARE, you can compare the effects of market volatilities on Gaztransport Technigaz and OPERA SOFTWARE and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Gaztransport Technigaz with a short position of OPERA SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and OPERA SOFTWARE.

Diversification Opportunities for Gaztransport Technigaz and OPERA SOFTWARE

GaztransportOPERADiversified AwayGaztransportOPERADiversified Away100%
0.02
  Correlation Coefficient

Significant diversification

The 3 months correlation between Gaztransport and OPERA is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and OPERA SOFTWARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OPERA SOFTWARE and Gaztransport Technigaz is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Gaztransport Technigaz SA are associated (or correlated) with OPERA SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OPERA SOFTWARE has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and OPERA SOFTWARE go up and down completely randomly.

Pair Corralation between Gaztransport Technigaz and OPERA SOFTWARE

Assuming the 90 days horizon Gaztransport Technigaz SA is expected to generate 1.16 times more return on investment than OPERA SOFTWARE. However, Gaztransport Technigaz is 1.16 times more volatile than OPERA SOFTWARE. It trades about 0.36 of its potential returns per unit of risk. OPERA SOFTWARE is currently generating about 0.01 per unit of risk. If you would invest  12,980  in Gaztransport Technigaz SA on October 30, 2024 and sell it today you would earn a total of  1,850  from holding Gaztransport Technigaz SA or generate 14.25% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Gaztransport Technigaz SA  vs.  OPERA SOFTWARE

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -5051015
JavaScript chart by amCharts 3.21.159TG OS3
       Timeline  
Gaztransport Technigaz 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Gaztransport Technigaz SA are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Gaztransport Technigaz reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan130135140145150
OPERA SOFTWARE 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days OPERA SOFTWARE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, OPERA SOFTWARE is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan0.610.620.630.640.650.660.670.68

Gaztransport Technigaz and OPERA SOFTWARE Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.6-4.19-2.79-1.38-0.02341.493.014.536.05 0.020.040.060.080.100.120.14
JavaScript chart by amCharts 3.21.159TG OS3
       Returns  

Pair Trading with Gaztransport Technigaz and OPERA SOFTWARE

The main advantage of trading using opposite Gaztransport Technigaz and OPERA SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, OPERA SOFTWARE can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in OPERA SOFTWARE will offset losses from the drop in OPERA SOFTWARE's long position.
The idea behind Gaztransport Technigaz SA and OPERA SOFTWARE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.

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