Correlation Between Gaztransport Technigaz and Reworld Media
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and Reworld Media 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 Reworld Media 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 Reworld Media, you can compare the effects of market volatilities on Gaztransport Technigaz and Reworld Media 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 Reworld Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and Reworld Media.
Diversification Opportunities for Gaztransport Technigaz and Reworld Media
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gaztransport and Reworld is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SAS and Reworld Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reworld Media 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 Reworld Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reworld Media has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and Reworld Media go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and Reworld Media
Assuming the 90 days trading horizon Gaztransport Technigaz SAS is expected to generate 0.59 times more return on investment than Reworld Media. However, Gaztransport Technigaz SAS is 1.69 times less risky than Reworld Media. It trades about 0.05 of its potential returns per unit of risk. Reworld Media is currently generating about -0.08 per unit of risk. If you would invest 9,701 in Gaztransport Technigaz SAS on September 1, 2024 and sell it today you would earn a total of 4,069 from holding Gaztransport Technigaz SAS or generate 41.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport Technigaz SAS vs. Reworld Media
Performance |
| Timeline |
| Gaztransport Technigaz |
| Reworld Media |
Gaztransport Technigaz and Reworld Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and Reworld Media
The main advantage of trading using opposite Gaztransport Technigaz and Reworld Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, Reworld Media 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 Reworld Media will offset losses from the drop in Reworld Media's long position.| Gaztransport Technigaz vs. Rubis SCA | Gaztransport Technigaz vs. Teleperformance SE | Gaztransport Technigaz vs. Sartorius Stedim Biotech | Gaztransport Technigaz vs. Nexity |
| Reworld Media vs. Impulse Fitness Solutions | Reworld Media vs. DONTNOD Entertainment SA | Reworld Media vs. Gaztransport Technigaz SAS | Reworld Media vs. Avenir Telecom 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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