Correlation Between Gaztransport Technigaz and Altamir SCA
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and Altamir SCA 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 Altamir SCA 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 Altamir SCA, you can compare the effects of market volatilities on Gaztransport Technigaz and Altamir SCA 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 Altamir SCA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and Altamir SCA.
Diversification Opportunities for Gaztransport Technigaz and Altamir SCA
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gaztransport and Altamir is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SAS and Altamir SCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altamir SCA 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 Altamir SCA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altamir SCA has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and Altamir SCA go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and Altamir SCA
Assuming the 90 days trading horizon Gaztransport Technigaz SAS is expected to generate 1.22 times more return on investment than Altamir SCA. However, Gaztransport Technigaz is 1.22 times more volatile than Altamir SCA. It trades about 0.04 of its potential returns per unit of risk. Altamir SCA is currently generating about -0.08 per unit of risk. If you would invest 12,883 in Gaztransport Technigaz SAS on August 30, 2024 and sell it today you would earn a total of 977.00 from holding Gaztransport Technigaz SAS or generate 7.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
Gaztransport Technigaz SAS vs. Altamir SCA
Performance |
| Timeline |
| Gaztransport Technigaz |
| Altamir SCA |
Gaztransport Technigaz and Altamir SCA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and Altamir SCA
The main advantage of trading using opposite Gaztransport Technigaz and Altamir SCA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, Altamir SCA 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 Altamir SCA will offset losses from the drop in Altamir SCA's long position.| Gaztransport Technigaz vs. Rubis SCA | Gaztransport Technigaz vs. Teleperformance SE | Gaztransport Technigaz vs. Sartorius Stedim Biotech | Gaztransport Technigaz vs. Nexity |
| Altamir SCA vs. CBO Territoria SA | Altamir SCA vs. Rubis SCA | Altamir SCA vs. Nexity | Altamir SCA vs. Gaztransport Technigaz SAS |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |