Correlation Between Gaztransport Technigaz and TRADEGATE
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and TRADEGATE 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 TRADEGATE 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 TRADEGATE, you can compare the effects of market volatilities on Gaztransport Technigaz and TRADEGATE 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 TRADEGATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and TRADEGATE.
Diversification Opportunities for Gaztransport Technigaz and TRADEGATE
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gaztransport and TRADEGATE is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and TRADEGATE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRADEGATE 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 TRADEGATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRADEGATE has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and TRADEGATE go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and TRADEGATE
Assuming the 90 days horizon Gaztransport Technigaz SA is expected to generate 1.42 times more return on investment than TRADEGATE. However, Gaztransport Technigaz is 1.42 times more volatile than TRADEGATE. It trades about 0.09 of its potential returns per unit of risk. TRADEGATE is currently generating about -0.16 per unit of risk. If you would invest 13,370 in Gaztransport Technigaz SA on September 2, 2024 and sell it today you would earn a total of 390.00 from holding Gaztransport Technigaz SA or generate 2.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. TRADEGATE
Performance |
| Timeline |
| Gaztransport Technigaz |
| TRADEGATE |
Gaztransport Technigaz and TRADEGATE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and TRADEGATE
The main advantage of trading using opposite Gaztransport Technigaz and TRADEGATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, TRADEGATE 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 TRADEGATE will offset losses from the drop in TRADEGATE's long position.| Gaztransport Technigaz vs. Superior Plus Corp | Gaztransport Technigaz vs. NMI Holdings | Gaztransport Technigaz vs. Origin Agritech | Gaztransport Technigaz vs. SIVERS SEMICONDUCTORS AB |
| TRADEGATE vs. BW OFFSHORE LTD | TRADEGATE vs. Zoom Video Communications | TRADEGATE vs. Astral Foods Limited | TRADEGATE vs. UNIVMUSIC GRPADR050 |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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