Correlation Between Gaztransport Technigaz and Stellantis
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and Stellantis 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 Stellantis 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 Stellantis NV, you can compare the effects of market volatilities on Gaztransport Technigaz and Stellantis 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 Stellantis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and Stellantis.
Diversification Opportunities for Gaztransport Technigaz and Stellantis
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gaztransport and Stellantis is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SAS and Stellantis NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stellantis NV 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 Stellantis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stellantis NV has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and Stellantis go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and Stellantis
Assuming the 90 days trading horizon Gaztransport Technigaz SAS is expected to generate 0.52 times more return on investment than Stellantis. However, Gaztransport Technigaz SAS is 1.94 times less risky than Stellantis. It trades about 0.07 of its potential returns per unit of risk. Stellantis NV is currently generating about -0.04 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. Stellantis NV
Performance |
| Timeline |
| Gaztransport Technigaz |
| Stellantis NV |
Gaztransport Technigaz and Stellantis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and Stellantis
The main advantage of trading using opposite Gaztransport Technigaz and Stellantis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, Stellantis 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 Stellantis will offset losses from the drop in Stellantis' long position.| Gaztransport Technigaz vs. Rubis SCA | Gaztransport Technigaz vs. Teleperformance SE | Gaztransport Technigaz vs. Sartorius Stedim Biotech | Gaztransport Technigaz vs. Nexity |
| Stellantis vs. LVMH Mot Hennessy | Stellantis vs. LOreal SA | Stellantis vs. Hermes International SCA | Stellantis vs. Manitou BF 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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