Correlation Between Atland SA and Gaztransport Technigaz
Can any of the company-specific risk be diversified away by investing in both Atland SA 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 Atland SA and Gaztransport Technigaz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atland SA and Gaztransport Technigaz SAS, you can compare the effects of market volatilities on Atland SA 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 Atland SA with a short position of Gaztransport Technigaz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atland SA and Gaztransport Technigaz.
Diversification Opportunities for Atland SA and Gaztransport Technigaz
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Atland and Gaztransport is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Atland SA and Gaztransport Technigaz SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport Technigaz and Atland SA 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 Atland SA 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 Atland SA i.e., Atland SA and Gaztransport Technigaz go up and down completely randomly.
Pair Corralation between Atland SA and Gaztransport Technigaz
Assuming the 90 days trading horizon Atland SA is expected to generate 2.31 times less return on investment than Gaztransport Technigaz. But when comparing it to its historical volatility, Atland SA is 1.53 times less risky than Gaztransport Technigaz. It trades about 0.03 of its potential returns per unit of risk. Gaztransport Technigaz SAS is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 9,897 in Gaztransport Technigaz SAS on August 26, 2024 and sell it today you would earn a total of 4,213 from holding Gaztransport Technigaz SAS or generate 42.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atland SA vs. Gaztransport Technigaz SAS
Performance |
| Timeline |
| Atland SA |
| Gaztransport Technigaz |
Atland SA and Gaztransport Technigaz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atland SA and Gaztransport Technigaz
The main advantage of trading using opposite Atland SA and Gaztransport Technigaz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atland SA 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.| Atland SA vs. Gaztransport Technigaz SAS | Atland SA vs. Sartorius Stedim Biotech | Atland SA vs. Mediantechn | Atland SA vs. CMG Cleantech SA |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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