Correlation Between Gaztransport Technigaz and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and Uber Technologies 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 Uber Technologies 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 Uber Technologies, you can compare the effects of market volatilities on Gaztransport Technigaz and Uber Technologies 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 Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and Uber Technologies.
Diversification Opportunities for Gaztransport Technigaz and Uber Technologies
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gaztransport and Uber is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies 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 Uber Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uber Technologies has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and Uber Technologies go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and Uber Technologies
Assuming the 90 days horizon Gaztransport Technigaz SA is expected to generate 1.12 times more return on investment than Uber Technologies. However, Gaztransport Technigaz is 1.12 times more volatile than Uber Technologies. It trades about 0.33 of its potential returns per unit of risk. Uber Technologies is currently generating about 0.16 per unit of risk. If you would invest 12,760 in Gaztransport Technigaz SA on November 3, 2024 and sell it today you would earn a total of 1,880 from holding Gaztransport Technigaz SA or generate 14.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. Uber Technologies
Performance |
| Timeline |
| Gaztransport Technigaz |
| Uber Technologies |
Gaztransport Technigaz and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and Uber Technologies
The main advantage of trading using opposite Gaztransport Technigaz and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, Uber Technologies 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 Uber Technologies will offset losses from the drop in Uber Technologies' long position.| Gaztransport Technigaz vs. Schlumberger Limited | Gaztransport Technigaz vs. Halliburton | Gaztransport Technigaz vs. Tenaris SA | Gaztransport Technigaz vs. China Oilfield Services |
| Uber Technologies vs. SIVERS SEMICONDUCTORS AB | Uber Technologies vs. NorAm Drilling AS | Uber Technologies vs. Volkswagen AG | Uber Technologies vs. Darden Restaurants |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| 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 | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |