Correlation Between Gaztransport Technigaz and VIEMED HLTHCARE
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and VIEMED HLTHCARE 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 VIEMED HLTHCARE 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 VIEMED HLTHCARE INC, you can compare the effects of market volatilities on Gaztransport Technigaz and VIEMED HLTHCARE 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 VIEMED HLTHCARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and VIEMED HLTHCARE.
Diversification Opportunities for Gaztransport Technigaz and VIEMED HLTHCARE
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gaztransport and VIEMED is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and VIEMED HLTHCARE INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIEMED HLTHCARE INC 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 VIEMED HLTHCARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIEMED HLTHCARE INC has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and VIEMED HLTHCARE go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and VIEMED HLTHCARE
Assuming the 90 days horizon Gaztransport Technigaz SA is expected to generate 0.63 times more return on investment than VIEMED HLTHCARE. However, Gaztransport Technigaz SA is 1.58 times less risky than VIEMED HLTHCARE. It trades about -0.19 of its potential returns per unit of risk. VIEMED HLTHCARE INC is currently generating about -0.14 per unit of risk. If you would invest 13,785 in Gaztransport Technigaz SA on September 26, 2024 and sell it today you would lose (1,005) from holding Gaztransport Technigaz SA or give up 7.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. VIEMED HLTHCARE INC
Performance |
| Timeline |
| Gaztransport Technigaz |
| VIEMED HLTHCARE INC |
Gaztransport Technigaz and VIEMED HLTHCARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and VIEMED HLTHCARE
The main advantage of trading using opposite Gaztransport Technigaz and VIEMED HLTHCARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, VIEMED HLTHCARE 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 VIEMED HLTHCARE will offset losses from the drop in VIEMED HLTHCARE's long position.| Gaztransport Technigaz vs. CeoTronics AG | Gaztransport Technigaz vs. CEOTRONICS | Gaztransport Technigaz vs. AGF Management Limited | Gaztransport Technigaz vs. THRACE PLASTICS |
| VIEMED HLTHCARE vs. REVO INSURANCE SPA | VIEMED HLTHCARE vs. TFS FINANCIAL | VIEMED HLTHCARE vs. Chiba Bank | VIEMED HLTHCARE vs. WillScot Mobile Mini |
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 Stocks Directory module to find actively traded stocks across global markets.
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