Correlation Between FISH PAYK and Gaztransport Technigaz
Can any of the company-specific risk be diversified away by investing in both FISH PAYK 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 FISH PAYK and Gaztransport Technigaz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FISH PAYK HEALTH and Gaztransport Technigaz SA, you can compare the effects of market volatilities on FISH PAYK 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 FISH PAYK with a short position of Gaztransport Technigaz. Check out your portfolio center. Please also check ongoing floating volatility patterns of FISH PAYK and Gaztransport Technigaz.
Diversification Opportunities for FISH PAYK and Gaztransport Technigaz
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between FISH and Gaztransport is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding FISH PAYK HEALTH and Gaztransport Technigaz SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport Technigaz and FISH PAYK 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 FISH PAYK HEALTH 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 FISH PAYK i.e., FISH PAYK and Gaztransport Technigaz go up and down completely randomly.
Pair Corralation between FISH PAYK and Gaztransport Technigaz
Assuming the 90 days trading horizon FISH PAYK is expected to generate 2.44 times less return on investment than Gaztransport Technigaz. In addition to that, FISH PAYK is 1.26 times more volatile than Gaztransport Technigaz SA. It trades about 0.08 of its total potential returns per unit of risk. Gaztransport Technigaz SA is currently generating about 0.24 per unit of volatility. If you would invest 12,330 in Gaztransport Technigaz SA on August 29, 2024 and sell it today you would earn a total of 1,850 from holding Gaztransport Technigaz SA or generate 15.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
FISH PAYK HEALTH vs. Gaztransport Technigaz SA
Performance |
| Timeline |
| FISH PAYK HEALTH |
| Gaztransport Technigaz |
FISH PAYK and Gaztransport Technigaz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FISH PAYK and Gaztransport Technigaz
The main advantage of trading using opposite FISH PAYK and Gaztransport Technigaz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FISH PAYK 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.| FISH PAYK vs. Apple Inc | FISH PAYK vs. Apple Inc | FISH PAYK vs. Superior Plus Corp | FISH PAYK vs. SIVERS SEMICONDUCTORS AB |
| Gaztransport Technigaz vs. NOV Inc | Gaztransport Technigaz vs. Superior Plus Corp | Gaztransport Technigaz vs. NMI Holdings | 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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