Correlation Between Gaztransport Technigaz and ATEME SA
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and ATEME SA 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 ATEME SA 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 ATEME SA, you can compare the effects of market volatilities on Gaztransport Technigaz and ATEME SA 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 ATEME SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and ATEME SA.
Diversification Opportunities for Gaztransport Technigaz and ATEME SA
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gaztransport and ATEME is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SAS and ATEME SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATEME 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 ATEME SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATEME SA has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and ATEME SA go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and ATEME SA
Assuming the 90 days trading horizon Gaztransport Technigaz SAS is expected to generate 0.47 times more return on investment than ATEME SA. However, Gaztransport Technigaz SAS is 2.12 times less risky than ATEME SA. It trades about 0.03 of its potential returns per unit of risk. ATEME SA is currently generating about -0.01 per unit of risk. If you would invest 12,007 in Gaztransport Technigaz SAS on September 4, 2024 and sell it today you would earn a total of 1,283 from holding Gaztransport Technigaz SAS or generate 10.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport Technigaz SAS vs. ATEME SA
Performance |
| Timeline |
| Gaztransport Technigaz |
| ATEME SA |
Gaztransport Technigaz and ATEME SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and ATEME SA
The main advantage of trading using opposite Gaztransport Technigaz and ATEME SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, ATEME SA 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 ATEME SA will offset losses from the drop in ATEME SA's long position.| Gaztransport Technigaz vs. Rubis SCA | Gaztransport Technigaz vs. Teleperformance SE | Gaztransport Technigaz vs. Sartorius Stedim Biotech | Gaztransport Technigaz vs. Nexity |
| ATEME SA vs. Metalliance SA | ATEME SA vs. Impulse Fitness Solutions | ATEME SA vs. ZCCM Investments Holdings | ATEME SA vs. Veolia Environnement VE |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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