Correlation Between Gaztransport Technigaz and Universal Display
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and Universal Display 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 Universal Display 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 Universal Display, you can compare the effects of market volatilities on Gaztransport Technigaz and Universal Display 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 Universal Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and Universal Display.
Diversification Opportunities for Gaztransport Technigaz and Universal Display
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gaztransport and Universal is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and Universal Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Display 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 Universal Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Display has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and Universal Display go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and Universal Display
Assuming the 90 days horizon Gaztransport Technigaz is expected to generate 1.15 times less return on investment than Universal Display. But when comparing it to its historical volatility, Gaztransport Technigaz SA is 1.34 times less risky than Universal Display. It trades about 0.05 of its potential returns per unit of risk. Universal Display is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 9,901 in Universal Display on September 24, 2024 and sell it today you would earn a total of 4,509 from holding Universal Display or generate 45.54% 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. Universal Display
Performance |
| Timeline |
| Gaztransport Technigaz |
| Universal Display |
Gaztransport Technigaz and Universal Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and Universal Display
The main advantage of trading using opposite Gaztransport Technigaz and Universal Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, Universal Display 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 Universal Display will offset losses from the drop in Universal Display's long position.| Gaztransport Technigaz vs. Schlumberger Limited | Gaztransport Technigaz vs. Halliburton | Gaztransport Technigaz vs. Halliburton | Gaztransport Technigaz vs. Baker Hughes Co |
| Universal Display vs. Siamgas And Petrochemicals | Universal Display vs. Gaztransport Technigaz SA | Universal Display vs. SCIENCE IN SPORT | Universal Display vs. SPORT LISBOA E |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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