Correlation Between Gaztransport Technigaz and Corporate Office
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and Corporate Office 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 Corporate Office 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 Corporate Office Properties, you can compare the effects of market volatilities on Gaztransport Technigaz and Corporate Office 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 Corporate Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and Corporate Office.
Diversification Opportunities for Gaztransport Technigaz and Corporate Office
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gaztransport and Corporate is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and Corporate Office Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corporate Office Pro 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 Corporate Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corporate Office Pro has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and Corporate Office go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and Corporate Office
Assuming the 90 days horizon Gaztransport Technigaz SA is expected to under-perform the Corporate Office. In addition to that, Gaztransport Technigaz is 1.87 times more volatile than Corporate Office Properties. It trades about -0.2 of its total potential returns per unit of risk. Corporate Office Properties is currently generating about -0.16 per unit of volatility. If you would invest 3,060 in Corporate Office Properties on September 24, 2024 and sell it today you would lose (100.00) from holding Corporate Office Properties or give up 3.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. Corporate Office Properties
Performance |
| Timeline |
| Gaztransport Technigaz |
| Corporate Office Pro |
Gaztransport Technigaz and Corporate Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and Corporate Office
The main advantage of trading using opposite Gaztransport Technigaz and Corporate Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, Corporate Office 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 Corporate Office will offset losses from the drop in Corporate Office's long position.| Gaztransport Technigaz vs. Schlumberger Limited | Gaztransport Technigaz vs. Halliburton | Gaztransport Technigaz vs. Halliburton | Gaztransport Technigaz vs. Baker Hughes Co |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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