Correlation Between Gaztransport Technigaz and Sogeclair
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and Sogeclair 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 Sogeclair 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 Sogeclair SA, you can compare the effects of market volatilities on Gaztransport Technigaz and Sogeclair 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 Sogeclair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and Sogeclair.
Diversification Opportunities for Gaztransport Technigaz and Sogeclair
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gaztransport and Sogeclair is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SAS and Sogeclair SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sogeclair SA 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 Sogeclair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sogeclair SA has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and Sogeclair go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and Sogeclair
Assuming the 90 days trading horizon Gaztransport Technigaz SAS is expected to generate 0.75 times more return on investment than Sogeclair. However, Gaztransport Technigaz SAS is 1.33 times less risky than Sogeclair. It trades about 0.05 of its potential returns per unit of risk. Sogeclair SA is currently generating about 0.02 per unit of risk. If you would invest 11,920 in Gaztransport Technigaz SAS on August 26, 2024 and sell it today you would earn a total of 2,190 from holding Gaztransport Technigaz SAS or generate 18.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport Technigaz SAS vs. Sogeclair SA
Performance |
| Timeline |
| Gaztransport Technigaz |
| Sogeclair SA |
Gaztransport Technigaz and Sogeclair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and Sogeclair
The main advantage of trading using opposite Gaztransport Technigaz and Sogeclair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, Sogeclair 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 Sogeclair will offset losses from the drop in Sogeclair's long position.| Gaztransport Technigaz vs. Rubis SCA | Gaztransport Technigaz vs. Teleperformance SE | Gaztransport Technigaz vs. Sartorius Stedim Biotech | Gaztransport Technigaz vs. Nexity |
| Sogeclair vs. Metalliance SA | Sogeclair vs. CMG Cleantech SA | Sogeclair vs. Groupe Pizzorno Environnement | Sogeclair vs. Fill Up Media |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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