Correlation Between Gaztransport Technigaz and Hoteles Bestprice
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and Hoteles Bestprice 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 Hoteles Bestprice 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 Hoteles Bestprice SA, you can compare the effects of market volatilities on Gaztransport Technigaz and Hoteles Bestprice 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 Hoteles Bestprice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and Hoteles Bestprice.
Diversification Opportunities for Gaztransport Technigaz and Hoteles Bestprice
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gaztransport and Hoteles is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SAS and Hoteles Bestprice SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hoteles Bestprice 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 Hoteles Bestprice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hoteles Bestprice has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and Hoteles Bestprice go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and Hoteles Bestprice
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. Hoteles Bestprice SA
Performance |
| Timeline |
| Gaztransport Technigaz |
| Hoteles Bestprice |
Gaztransport Technigaz and Hoteles Bestprice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and Hoteles Bestprice
The main advantage of trading using opposite Gaztransport Technigaz and Hoteles Bestprice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, Hoteles Bestprice 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 Hoteles Bestprice will offset losses from the drop in Hoteles Bestprice's long position.| Gaztransport Technigaz vs. Rubis SCA | Gaztransport Technigaz vs. Teleperformance SE | Gaztransport Technigaz vs. Sartorius Stedim Biotech | Gaztransport Technigaz vs. Nexity |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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