Correlation Between Gaztransport Technigaz and Warehouses
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and Warehouses 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 Warehouses 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 Warehouses De Pauw, you can compare the effects of market volatilities on Gaztransport Technigaz and Warehouses 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 Warehouses. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and Warehouses.
Diversification Opportunities for Gaztransport Technigaz and Warehouses
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gaztransport and Warehouses is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and Warehouses De Pauw in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Warehouses De Pauw 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 Warehouses. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Warehouses De Pauw has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and Warehouses go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and Warehouses
Assuming the 90 days horizon Gaztransport Technigaz SA is expected to generate 1.22 times more return on investment than Warehouses. However, Gaztransport Technigaz is 1.22 times more volatile than Warehouses De Pauw. It trades about 0.05 of its potential returns per unit of risk. Warehouses De Pauw is currently generating about -0.02 per unit of risk. If you would invest 9,314 in Gaztransport Technigaz SA on September 13, 2024 and sell it today you would earn a total of 3,636 from holding Gaztransport Technigaz SA or generate 39.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. Warehouses De Pauw
Performance |
| Timeline |
| Gaztransport Technigaz |
| Warehouses De Pauw |
Gaztransport Technigaz and Warehouses Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and Warehouses
The main advantage of trading using opposite Gaztransport Technigaz and Warehouses positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, Warehouses 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 Warehouses will offset losses from the drop in Warehouses' long position.| Gaztransport Technigaz vs. Tenaris SA | Gaztransport Technigaz vs. NOV Inc | Gaztransport Technigaz vs. Superior Plus Corp | Gaztransport Technigaz vs. SIVERS SEMICONDUCTORS AB |
| Warehouses vs. INTERSHOP Communications Aktiengesellschaft | Warehouses vs. Gaztransport Technigaz SA | Warehouses vs. Consolidated Communications Holdings | Warehouses vs. Air Transport Services |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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