Correlation Between Compal Electronics and Gaztransport
Can any of the company-specific risk be diversified away by investing in both Compal Electronics and Gaztransport 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 Compal Electronics and Gaztransport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Compal Electronics GDR and Gaztransport et Technigaz, you can compare the effects of market volatilities on Compal Electronics and Gaztransport 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 Compal Electronics with a short position of Gaztransport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compal Electronics and Gaztransport.
Diversification Opportunities for Compal Electronics and Gaztransport
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Compal and Gaztransport is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Compal Electronics GDR and Gaztransport et Technigaz in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport et Technigaz and Compal Electronics 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 Compal Electronics GDR are associated (or correlated) with Gaztransport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaztransport et Technigaz has no effect on the direction of Compal Electronics i.e., Compal Electronics and Gaztransport go up and down completely randomly.
Pair Corralation between Compal Electronics and Gaztransport
If you would invest 310.00 in Compal Electronics GDR on September 19, 2024 and sell it today you would earn a total of 0.00 from holding Compal Electronics GDR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compal Electronics GDR vs. Gaztransport et Technigaz
Performance |
| Timeline |
| Compal Electronics GDR |
| Gaztransport et Technigaz |
Compal Electronics and Gaztransport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compal Electronics and Gaztransport
The main advantage of trading using opposite Compal Electronics and Gaztransport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compal Electronics position performs unexpectedly, Gaztransport 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 will offset losses from the drop in Gaztransport's long position.| Compal Electronics vs. Hyundai Motor | Compal Electronics vs. Toyota Motor Corp | Compal Electronics vs. SoftBank Group Corp | Compal Electronics vs. Halyk Bank of |
| Gaztransport vs. Griffin Mining | Gaztransport vs. McEwen Mining | Gaztransport vs. Samsung Electronics Co | Gaztransport vs. Compal Electronics GDR |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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