Correlation Between CSL and Gaztransport Technigaz
Can any of the company-specific risk be diversified away by investing in both CSL 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 CSL and Gaztransport Technigaz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSL LTD SPONADR and Gaztransport Technigaz SA, you can compare the effects of market volatilities on CSL 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 CSL with a short position of Gaztransport Technigaz. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSL and Gaztransport Technigaz.
Diversification Opportunities for CSL and Gaztransport Technigaz
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CSL and Gaztransport is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding CSL LTD SPONADR and Gaztransport Technigaz SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport Technigaz and CSL 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 CSL LTD SPONADR 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 CSL i.e., CSL and Gaztransport Technigaz go up and down completely randomly.
Pair Corralation between CSL and Gaztransport Technigaz
Assuming the 90 days trading horizon CSL LTD SPONADR is expected to generate 0.87 times more return on investment than Gaztransport Technigaz. However, CSL LTD SPONADR is 1.15 times less risky than Gaztransport Technigaz. It trades about 0.01 of its potential returns per unit of risk. Gaztransport Technigaz SA is currently generating about 0.01 per unit of risk. If you would invest 8,381 in CSL LTD SPONADR on September 3, 2024 and sell it today you would earn a total of 119.00 from holding CSL LTD SPONADR or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSL LTD SPONADR vs. Gaztransport Technigaz SA
Performance |
| Timeline |
| CSL LTD SPONADR |
| Gaztransport Technigaz |
CSL and Gaztransport Technigaz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSL and Gaztransport Technigaz
The main advantage of trading using opposite CSL and Gaztransport Technigaz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSL 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.| CSL vs. Beazer Homes USA | CSL vs. Neinor Homes SA | CSL vs. BlueScope Steel Limited | CSL vs. Addus HomeCare |
| Gaztransport Technigaz vs. NISSAN CHEMICAL IND | Gaztransport Technigaz vs. Siamgas And Petrochemicals | Gaztransport Technigaz vs. STMicroelectronics NV | Gaztransport Technigaz vs. LPKF Laser Electronics |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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