Correlation Between Gaztransport Technigaz and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and Jacquet Metal 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 Jacquet Metal 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 Jacquet Metal Service, you can compare the effects of market volatilities on Gaztransport Technigaz and Jacquet Metal 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 Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and Jacquet Metal.
Diversification Opportunities for Gaztransport Technigaz and Jacquet Metal
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gaztransport and Jacquet is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SAS and Jacquet Metal Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacquet Metal Service 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 Jacquet Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacquet Metal Service has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and Jacquet Metal go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and Jacquet Metal
Assuming the 90 days trading horizon Gaztransport Technigaz SAS is expected to generate 0.66 times more return on investment than Jacquet Metal. However, Gaztransport Technigaz SAS is 1.51 times less risky than Jacquet Metal. It trades about 0.33 of its potential returns per unit of risk. Jacquet Metal Service is currently generating about -0.13 per unit of risk. If you would invest 13,450 in Gaztransport Technigaz SAS on November 3, 2024 and sell it today you would earn a total of 1,340 from holding Gaztransport Technigaz SAS or generate 9.96% 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. Jacquet Metal Service
Performance |
| Timeline |
| Gaztransport Technigaz |
| Jacquet Metal Service |
Gaztransport Technigaz and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and Jacquet Metal
The main advantage of trading using opposite Gaztransport Technigaz and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, Jacquet Metal 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 Jacquet Metal will offset losses from the drop in Jacquet Metal's long position.| Gaztransport Technigaz vs. Rubis SCA | Gaztransport Technigaz vs. Teleperformance SE | Gaztransport Technigaz vs. Sartorius Stedim Biotech | Gaztransport Technigaz vs. Nexity |
| Jacquet Metal vs. Derichebourg | Jacquet Metal vs. Mersen SA | Jacquet Metal vs. Trigano SA | Jacquet Metal vs. Chargeurs 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |