Correlation Between Gaztransport Technigaz and BW OFFSHORE
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and BW OFFSHORE 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 BW OFFSHORE 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 BW OFFSHORE LTD, you can compare the effects of market volatilities on Gaztransport Technigaz and BW OFFSHORE 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 BW OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and BW OFFSHORE.
Diversification Opportunities for Gaztransport Technigaz and BW OFFSHORE
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gaztransport and XY81 is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and BW OFFSHORE LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BW OFFSHORE LTD 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 BW OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BW OFFSHORE LTD has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and BW OFFSHORE go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and BW OFFSHORE
Assuming the 90 days horizon Gaztransport Technigaz SA is expected to generate 0.72 times more return on investment than BW OFFSHORE. However, Gaztransport Technigaz SA is 1.39 times less risky than BW OFFSHORE. It trades about 0.17 of its potential returns per unit of risk. BW OFFSHORE LTD is currently generating about -0.11 per unit of risk. If you would invest 14,010 in Gaztransport Technigaz SA on November 6, 2024 and sell it today you would earn a total of 670.00 from holding Gaztransport Technigaz SA or generate 4.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. BW OFFSHORE LTD
Performance |
| Timeline |
| Gaztransport Technigaz |
| BW OFFSHORE LTD |
Gaztransport Technigaz and BW OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and BW OFFSHORE
The main advantage of trading using opposite Gaztransport Technigaz and BW OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, BW OFFSHORE 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 BW OFFSHORE will offset losses from the drop in BW OFFSHORE's long position.| Gaztransport Technigaz vs. Aya Gold Silver | Gaztransport Technigaz vs. Perseus Mining Limited | Gaztransport Technigaz vs. JSC Halyk bank | Gaztransport Technigaz vs. Endeavour Mining PLC |
| BW OFFSHORE vs. East Africa Metals | BW OFFSHORE vs. Sunny Optical Technology | BW OFFSHORE vs. MAGNUM MINING EXP | BW OFFSHORE vs. Zijin Mining Group |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |