Correlation Between Gaztransport Technigaz and Cibox Interctive
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and Cibox Interctive 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 Gaztransport Technigaz and Cibox Interctive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaztransport Technigaz SAS and Cibox Interctive SA, you can compare the effects of market volatilities on Gaztransport Technigaz and Cibox Interctive 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 Gaztransport Technigaz with a short position of Cibox Interctive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and Cibox Interctive.
Diversification Opportunities for Gaztransport Technigaz and Cibox Interctive
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gaztransport and Cibox is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SAS and Cibox Interctive SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cibox Interctive and Gaztransport Technigaz 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 Gaztransport Technigaz SAS are associated (or correlated) with Cibox Interctive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cibox Interctive has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and Cibox Interctive go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and Cibox Interctive
Assuming the 90 days trading horizon Gaztransport Technigaz SAS is expected to generate 0.19 times more return on investment than Cibox Interctive. However, Gaztransport Technigaz SAS is 5.37 times less risky than Cibox Interctive. It trades about -0.07 of its potential returns per unit of risk. Cibox Interctive SA is currently generating about -0.18 per unit of risk. If you would invest 13,518 in Gaztransport Technigaz SAS on September 12, 2024 and sell it today you would lose (268.00) from holding Gaztransport Technigaz SAS or give up 1.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport Technigaz SAS vs. Cibox Interctive SA
Performance |
| Timeline |
| Gaztransport Technigaz |
| Cibox Interctive |
Gaztransport Technigaz and Cibox Interctive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and Cibox Interctive
The main advantage of trading using opposite Gaztransport Technigaz and Cibox Interctive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, Cibox Interctive 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 Cibox Interctive will offset losses from the drop in Cibox Interctive's long position.| Gaztransport Technigaz vs. Rubis SCA | Gaztransport Technigaz vs. Teleperformance SE | Gaztransport Technigaz vs. Sartorius Stedim Biotech | Gaztransport Technigaz vs. Nexity |
| Cibox Interctive vs. Linedata Services SA | Cibox Interctive vs. Guandao Puer Investment | Cibox Interctive vs. Eutelsat Communications SA | Cibox Interctive vs. ZCCM Investments Holdings |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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