Correlation Between Gaztransport Technigaz and Largo SAS
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and Largo SAS 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 Largo SAS 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 Largo SAS, you can compare the effects of market volatilities on Gaztransport Technigaz and Largo SAS 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 Largo SAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and Largo SAS.
Diversification Opportunities for Gaztransport Technigaz and Largo SAS
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gaztransport and Largo is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SAS and Largo SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Largo 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 Largo SAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Largo SAS has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and Largo SAS go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and Largo SAS
Assuming the 90 days trading horizon Gaztransport Technigaz is expected to generate 1.05 times less return on investment than Largo SAS. But when comparing it to its historical volatility, Gaztransport Technigaz SAS is 2.38 times less risky than Largo SAS. It trades about 0.05 of its potential returns per unit of risk. Largo SAS is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 185.00 in Largo SAS on September 12, 2024 and sell it today you would earn a total of 9.00 from holding Largo SAS or generate 4.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
Gaztransport Technigaz SAS vs. Largo SAS
Performance |
| Timeline |
| Gaztransport Technigaz |
| Largo SAS |
Gaztransport Technigaz and Largo SAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and Largo SAS
The main advantage of trading using opposite Gaztransport Technigaz and Largo SAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, Largo SAS 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 Largo SAS will offset losses from the drop in Largo SAS's long position.| Gaztransport Technigaz vs. Rubis SCA | Gaztransport Technigaz vs. Teleperformance SE | Gaztransport Technigaz vs. Sartorius Stedim Biotech | Gaztransport Technigaz vs. Nexity |
| Largo SAS vs. Technip Energies BV | Largo SAS vs. Entech SE SAS | Largo SAS vs. Jacquet Metal Service | Largo SAS vs. Gaztransport Technigaz SAS |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Commodity Directory Find actively traded commodities issued by global exchanges |