Correlation Between Gaztransport Technigaz and MINCO SILVER
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and MINCO SILVER 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 MINCO SILVER 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 MINCO SILVER, you can compare the effects of market volatilities on Gaztransport Technigaz and MINCO SILVER 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 MINCO SILVER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and MINCO SILVER.
Diversification Opportunities for Gaztransport Technigaz and MINCO SILVER
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gaztransport and MINCO is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and MINCO SILVER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MINCO SILVER 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 MINCO SILVER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MINCO SILVER has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and MINCO SILVER go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and MINCO SILVER
Assuming the 90 days horizon Gaztransport Technigaz SA is expected to generate 0.48 times more return on investment than MINCO SILVER. However, Gaztransport Technigaz SA is 2.07 times less risky than MINCO SILVER. It trades about 0.07 of its potential returns per unit of risk. MINCO SILVER is currently generating about 0.01 per unit of risk. If you would invest 9,242 in Gaztransport Technigaz SA on August 31, 2024 and sell it today you would earn a total of 4,418 from holding Gaztransport Technigaz SA or generate 47.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.74% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. MINCO SILVER
Performance |
| Timeline |
| Gaztransport Technigaz |
| MINCO SILVER |
Gaztransport Technigaz and MINCO SILVER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and MINCO SILVER
The main advantage of trading using opposite Gaztransport Technigaz and MINCO SILVER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, MINCO SILVER 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 MINCO SILVER will offset losses from the drop in MINCO SILVER's long position.| Gaztransport Technigaz vs. Schlumberger Limited | Gaztransport Technigaz vs. Halliburton | Gaztransport Technigaz vs. Tenaris SA | Gaztransport Technigaz vs. Superior Plus Corp |
| MINCO SILVER vs. RETAIL FOOD GROUP | MINCO SILVER vs. Pick n Pay | MINCO SILVER vs. BJs Wholesale Club | MINCO SILVER vs. NetSol Technologies |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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