Correlation Between Gaztransport Technigaz and PPG Industries
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and PPG Industries 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 PPG Industries 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 PPG Industries, you can compare the effects of market volatilities on Gaztransport Technigaz and PPG Industries 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 PPG Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and PPG Industries.
Diversification Opportunities for Gaztransport Technigaz and PPG Industries
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gaztransport and PPG is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and PPG Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PPG Industries 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 PPG Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PPG Industries has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and PPG Industries go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and PPG Industries
Assuming the 90 days horizon Gaztransport Technigaz SA is expected to generate 1.32 times more return on investment than PPG Industries. However, Gaztransport Technigaz is 1.32 times more volatile than PPG Industries. It trades about 0.09 of its potential returns per unit of risk. PPG Industries is currently generating about 0.05 per unit of risk. If you would invest 13,450 in Gaztransport Technigaz SA on August 31, 2024 and sell it today you would earn a total of 380.00 from holding Gaztransport Technigaz SA or generate 2.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. PPG Industries
Performance |
| Timeline |
| Gaztransport Technigaz |
| PPG Industries |
Gaztransport Technigaz and PPG Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and PPG Industries
The main advantage of trading using opposite Gaztransport Technigaz and PPG Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, PPG Industries 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 PPG Industries will offset losses from the drop in PPG Industries' long position.| Gaztransport Technigaz vs. Schlumberger Limited | Gaztransport Technigaz vs. Halliburton | Gaztransport Technigaz vs. Tenaris SA | Gaztransport Technigaz vs. Superior Plus Corp |
| PPG Industries vs. PRECISION DRILLING P | PPG Industries vs. Apollo Investment Corp | PPG Industries vs. AWILCO DRILLING PLC | PPG Industries vs. SLR Investment Corp |
Check out your portfolio center.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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |