Correlation Between ArcelorMittal and Gaztransport Technigaz
Can any of the company-specific risk be diversified away by investing in both ArcelorMittal and Gaztransport Technigaz 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 ArcelorMittal and Gaztransport Technigaz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ArcelorMittal and Gaztransport Technigaz SA, you can compare the effects of market volatilities on ArcelorMittal and Gaztransport Technigaz 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 ArcelorMittal with a short position of Gaztransport Technigaz. Check out your portfolio center. Please also check ongoing floating volatility patterns of ArcelorMittal and Gaztransport Technigaz.
Diversification Opportunities for ArcelorMittal and Gaztransport Technigaz
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ArcelorMittal and Gaztransport is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding ArcelorMittal and Gaztransport Technigaz SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport Technigaz and ArcelorMittal 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 ArcelorMittal are associated (or correlated) with Gaztransport Technigaz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaztransport Technigaz has no effect on the direction of ArcelorMittal i.e., ArcelorMittal and Gaztransport Technigaz go up and down completely randomly.
Pair Corralation between ArcelorMittal and Gaztransport Technigaz
Assuming the 90 days trading horizon ArcelorMittal is expected to generate 9.45 times less return on investment than Gaztransport Technigaz. In addition to that, ArcelorMittal is 1.05 times more volatile than Gaztransport Technigaz SA. It trades about 0.0 of its total potential returns per unit of risk. Gaztransport Technigaz SA is currently generating about 0.05 per unit of volatility. If you would invest 9,557 in Gaztransport Technigaz SA on September 2, 2024 and sell it today you would earn a total of 4,203 from holding Gaztransport Technigaz SA or generate 43.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ArcelorMittal vs. Gaztransport Technigaz SA
Performance |
| Timeline |
| ArcelorMittal |
| Gaztransport Technigaz |
ArcelorMittal and Gaztransport Technigaz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ArcelorMittal and Gaztransport Technigaz
The main advantage of trading using opposite ArcelorMittal and Gaztransport Technigaz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ArcelorMittal position performs unexpectedly, Gaztransport Technigaz 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 Gaztransport Technigaz will offset losses from the drop in Gaztransport Technigaz's long position.| ArcelorMittal vs. HOCHSCHILD MINING | ArcelorMittal vs. GAMESTOP | ArcelorMittal vs. MIRAMAR HOTEL INV | ArcelorMittal vs. Xenia Hotels Resorts |
| Gaztransport Technigaz vs. Superior Plus Corp | Gaztransport Technigaz vs. NMI Holdings | Gaztransport Technigaz vs. Origin Agritech | Gaztransport Technigaz vs. SIVERS SEMICONDUCTORS AB |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |