Correlation Between Elior SCA and Gaztransport Technigaz
Can any of the company-specific risk be diversified away by investing in both Elior SCA 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 Elior SCA and Gaztransport Technigaz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elior SCA and Gaztransport Technigaz SAS, you can compare the effects of market volatilities on Elior SCA 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 Elior SCA with a short position of Gaztransport Technigaz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elior SCA and Gaztransport Technigaz.
Diversification Opportunities for Elior SCA and Gaztransport Technigaz
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Elior and Gaztransport is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Elior SCA and Gaztransport Technigaz SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport Technigaz and Elior SCA 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 Elior SCA 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 Elior SCA i.e., Elior SCA and Gaztransport Technigaz go up and down completely randomly.
Pair Corralation between Elior SCA and Gaztransport Technigaz
Assuming the 90 days trading horizon Elior SCA is expected to generate 6.89 times less return on investment than Gaztransport Technigaz. In addition to that, Elior SCA is 2.11 times more volatile than Gaztransport Technigaz SAS. It trades about 0.0 of its total potential returns per unit of risk. Gaztransport Technigaz SAS is currently generating about 0.05 per unit of volatility. If you would invest 9,895 in Gaztransport Technigaz SAS on September 3, 2024 and sell it today you would earn a total of 3,875 from holding Gaztransport Technigaz SAS or generate 39.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elior SCA vs. Gaztransport Technigaz SAS
Performance |
| Timeline |
| Elior SCA |
| Gaztransport Technigaz |
Elior SCA and Gaztransport Technigaz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elior SCA and Gaztransport Technigaz
The main advantage of trading using opposite Elior SCA and Gaztransport Technigaz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elior SCA 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.| Elior SCA vs. SA Catana Group | Elior SCA vs. Trigano SA | Elior SCA vs. Bnteau SA | Elior SCA vs. Piscines Desjoyaux SA |
| Gaztransport Technigaz vs. Rubis SCA | Gaztransport Technigaz vs. Teleperformance SE | Gaztransport Technigaz vs. Sartorius Stedim Biotech | Gaztransport Technigaz vs. Nexity |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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