Correlation Between Gaztransport Technigaz and Soditech
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and Soditech 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 Soditech 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 Soditech SA, you can compare the effects of market volatilities on Gaztransport Technigaz and Soditech 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 Soditech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and Soditech.
Diversification Opportunities for Gaztransport Technigaz and Soditech
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gaztransport and Soditech is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SAS and Soditech SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soditech 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 Soditech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soditech SA has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and Soditech go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and Soditech
Assuming the 90 days trading horizon Gaztransport Technigaz SAS is expected to generate 2.91 times more return on investment than Soditech. However, Gaztransport Technigaz is 2.91 times more volatile than Soditech SA. It trades about 0.07 of its potential returns per unit of risk. Soditech SA is currently generating about -0.29 per unit of risk. If you would invest 13,730 in Gaztransport Technigaz SAS on August 30, 2024 and sell it today you would earn a total of 220.00 from holding Gaztransport Technigaz SAS or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Gaztransport Technigaz SAS vs. Soditech SA
Performance |
| Timeline |
| Gaztransport Technigaz |
| Soditech SA |
Gaztransport Technigaz and Soditech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and Soditech
The main advantage of trading using opposite Gaztransport Technigaz and Soditech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, Soditech 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 Soditech will offset losses from the drop in Soditech's long position.| Gaztransport Technigaz vs. Rubis SCA | Gaztransport Technigaz vs. Teleperformance SE | Gaztransport Technigaz vs. Sartorius Stedim Biotech | Gaztransport Technigaz vs. Nexity |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |