Correlation Between Gaztransport Technigaz and Entech SE
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and Entech SE 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 Entech SE 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 Entech SE SAS, you can compare the effects of market volatilities on Gaztransport Technigaz and Entech SE 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 Entech SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and Entech SE.
Diversification Opportunities for Gaztransport Technigaz and Entech SE
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gaztransport and Entech is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SAS and Entech SE SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entech SE SAS 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 Entech SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entech SE SAS has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and Entech SE go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and Entech SE
Assuming the 90 days trading horizon Gaztransport Technigaz SAS is expected to generate 0.37 times more return on investment than Entech SE. However, Gaztransport Technigaz SAS is 2.69 times less risky than Entech SE. It trades about -0.01 of its potential returns per unit of risk. Entech SE SAS is currently generating about -0.02 per unit of risk. If you would invest 14,547 in Gaztransport Technigaz SAS on September 1, 2024 and sell it today you would lose (777.00) from holding Gaztransport Technigaz SAS or give up 5.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport Technigaz SAS vs. Entech SE SAS
Performance |
| Timeline |
| Gaztransport Technigaz |
| Entech SE SAS |
Gaztransport Technigaz and Entech SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and Entech SE
The main advantage of trading using opposite Gaztransport Technigaz and Entech SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, Entech SE 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 Entech SE will offset losses from the drop in Entech SE's long position.| Gaztransport Technigaz vs. Rubis SCA | Gaztransport Technigaz vs. Teleperformance SE | Gaztransport Technigaz vs. Sartorius Stedim Biotech | Gaztransport Technigaz vs. Nexity |
| Entech SE vs. Afyren SAS | Entech SE vs. Voltalia SA | Entech SE vs. Waga Energy SA | Entech SE vs. Haffner Energy SA |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |