Correlation Between Hansa Investment and Gaztransport
Can any of the company-specific risk be diversified away by investing in both Hansa Investment and Gaztransport 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 Hansa Investment and Gaztransport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hansa Investment and Gaztransport et Technigaz, you can compare the effects of market volatilities on Hansa Investment and Gaztransport 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 Hansa Investment with a short position of Gaztransport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hansa Investment and Gaztransport.
Diversification Opportunities for Hansa Investment and Gaztransport
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hansa and Gaztransport is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Hansa Investment and Gaztransport et Technigaz in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport et Technigaz and Hansa Investment 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 Hansa Investment are associated (or correlated) with Gaztransport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaztransport et Technigaz has no effect on the direction of Hansa Investment i.e., Hansa Investment and Gaztransport go up and down completely randomly.
Pair Corralation between Hansa Investment and Gaztransport
Assuming the 90 days trading horizon Hansa Investment is expected to generate 1.37 times less return on investment than Gaztransport. In addition to that, Hansa Investment is 1.1 times more volatile than Gaztransport et Technigaz. It trades about 0.06 of its total potential returns per unit of risk. Gaztransport et Technigaz is currently generating about 0.09 per unit of volatility. If you would invest 12,657 in Gaztransport et Technigaz on September 13, 2024 and sell it today you would earn a total of 643.00 from holding Gaztransport et Technigaz or generate 5.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hansa Investment vs. Gaztransport et Technigaz
Performance |
| Timeline |
| Hansa Investment |
| Gaztransport et Technigaz |
Hansa Investment and Gaztransport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hansa Investment and Gaztransport
The main advantage of trading using opposite Hansa Investment and Gaztransport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hansa Investment position performs unexpectedly, Gaztransport 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 Gaztransport will offset losses from the drop in Gaztransport's long position.| Hansa Investment vs. CATCo Reinsurance Opportunities | Hansa Investment vs. BH Macro Limited | Hansa Investment vs. Legal General Group | Hansa Investment vs. TMT Investments PLC |
| Gaztransport vs. Samsung Electronics Co | Gaztransport vs. Samsung Electronics Co | Gaztransport vs. Hyundai Motor | Gaztransport vs. Reliance Industries Ltd |
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.
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