Correlation Between Gaztransport Technigaz and Simon Property
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and Simon Property 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 Simon Property 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 Simon Property Group, you can compare the effects of market volatilities on Gaztransport Technigaz and Simon Property 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 Simon Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and Simon Property.
Diversification Opportunities for Gaztransport Technigaz and Simon Property
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gaztransport and Simon is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and Simon Property Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simon Property Group 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 Simon Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simon Property Group has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and Simon Property go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and Simon Property
Assuming the 90 days horizon Gaztransport Technigaz is expected to generate 1.54 times less return on investment than Simon Property. In addition to that, Gaztransport Technigaz is 1.19 times more volatile than Simon Property Group. It trades about 0.05 of its total potential returns per unit of risk. Simon Property Group is currently generating about 0.08 per unit of volatility. If you would invest 9,668 in Simon Property Group on September 12, 2024 and sell it today you would earn a total of 7,422 from holding Simon Property Group or generate 76.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. Simon Property Group
Performance |
| Timeline |
| Gaztransport Technigaz |
| Simon Property Group |
Gaztransport Technigaz and Simon Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and Simon Property
The main advantage of trading using opposite Gaztransport Technigaz and Simon Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, Simon Property 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 Simon Property will offset losses from the drop in Simon Property's long position.| Gaztransport Technigaz vs. Tenaris SA | Gaztransport Technigaz vs. NOV Inc | Gaztransport Technigaz vs. Superior Plus Corp | Gaztransport Technigaz vs. SIVERS SEMICONDUCTORS AB |
| Simon Property vs. Air Transport Services | Simon Property vs. BROADSTNET LEADL 00025 | Simon Property vs. International Game Technology | Simon Property vs. Gaztransport Technigaz SA |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |