Correlation Between Gaztransport Technigaz and Interparfums
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and Interparfums 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 Interparfums 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 Interparfums SA, you can compare the effects of market volatilities on Gaztransport Technigaz and Interparfums 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 Interparfums. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and Interparfums.
Diversification Opportunities for Gaztransport Technigaz and Interparfums
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gaztransport and Interparfums is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SAS and Interparfums SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interparfums 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 Interparfums. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interparfums SA has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and Interparfums go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and Interparfums
Assuming the 90 days trading horizon Gaztransport Technigaz SAS is expected to generate 0.85 times more return on investment than Interparfums. However, Gaztransport Technigaz SAS is 1.18 times less risky than Interparfums. It trades about 0.05 of its potential returns per unit of risk. Interparfums SA is currently generating about -0.01 per unit of risk. If you would invest 9,130 in Gaztransport Technigaz SAS on November 19, 2024 and sell it today you would earn a total of 4,270 from holding Gaztransport Technigaz SAS or generate 46.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Gaztransport Technigaz SAS vs. Interparfums SA
Performance |
| Timeline |
| Gaztransport Technigaz |
| Interparfums SA |
Gaztransport Technigaz and Interparfums Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and Interparfums
The main advantage of trading using opposite Gaztransport Technigaz and Interparfums positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, Interparfums 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 Interparfums will offset losses from the drop in Interparfums' long position.| Gaztransport Technigaz vs. Rubis SCA | Gaztransport Technigaz vs. Teleperformance SE | Gaztransport Technigaz vs. Sartorius Stedim Biotech | Gaztransport Technigaz vs. Nexity |
| Interparfums vs. Remy Cointreau | Interparfums vs. Alten SA | Interparfums vs. Gaztransport Technigaz SAS | Interparfums vs. Trigano 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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