Correlation Between Gaussin and Vergnet
Can any of the company-specific risk be diversified away by investing in both Gaussin and Vergnet 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 Gaussin and Vergnet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaussin and Vergnet, you can compare the effects of market volatilities on Gaussin and Vergnet 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 Gaussin with a short position of Vergnet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaussin and Vergnet.
Diversification Opportunities for Gaussin and Vergnet
Poor diversification
The 3 months correlation between Gaussin and Vergnet is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Gaussin and Vergnet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vergnet and Gaussin 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 Gaussin are associated (or correlated) with Vergnet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vergnet has no effect on the direction of Gaussin i.e., Gaussin and Vergnet go up and down completely randomly.
Pair Corralation between Gaussin and Vergnet
Assuming the 90 days trading horizon Gaussin is expected to generate 2.47 times more return on investment than Vergnet. However, Gaussin is 2.47 times more volatile than Vergnet. It trades about -0.02 of its potential returns per unit of risk. Vergnet is currently generating about -0.37 per unit of risk. If you would invest 24.00 in Gaussin on August 24, 2024 and sell it today you would lose (20.40) from holding Gaussin or give up 85.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaussin vs. Vergnet
Performance |
| Timeline |
| Gaussin |
| Vergnet |
Gaussin and Vergnet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaussin and Vergnet
The main advantage of trading using opposite Gaussin and Vergnet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaussin position performs unexpectedly, Vergnet 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 Vergnet will offset losses from the drop in Vergnet's long position.| Gaussin vs. Prodways Group SA | Gaussin vs. Claranova SE | Gaussin vs. DBV Technologies SA | Gaussin vs. Manitou BF SA |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |