Correlation Between KENEDIX OFFICE and Gaztransport Technigaz
Can any of the company-specific risk be diversified away by investing in both KENEDIX OFFICE and Gaztransport Technigaz 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 KENEDIX OFFICE and Gaztransport Technigaz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KENEDIX OFFICE INV and Gaztransport Technigaz SA, you can compare the effects of market volatilities on KENEDIX OFFICE and Gaztransport Technigaz 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 KENEDIX OFFICE with a short position of Gaztransport Technigaz. Check out your portfolio center. Please also check ongoing floating volatility patterns of KENEDIX OFFICE and Gaztransport Technigaz.
Diversification Opportunities for KENEDIX OFFICE and Gaztransport Technigaz
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KENEDIX and Gaztransport is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding KENEDIX OFFICE INV and Gaztransport Technigaz SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport Technigaz and KENEDIX OFFICE 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 KENEDIX OFFICE INV are associated (or correlated) with Gaztransport Technigaz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaztransport Technigaz has no effect on the direction of KENEDIX OFFICE i.e., KENEDIX OFFICE and Gaztransport Technigaz go up and down completely randomly.
Pair Corralation between KENEDIX OFFICE and Gaztransport Technigaz
Assuming the 90 days horizon KENEDIX OFFICE INV is expected to generate 0.51 times more return on investment than Gaztransport Technigaz. However, KENEDIX OFFICE INV is 1.97 times less risky than Gaztransport Technigaz. It trades about -0.17 of its potential returns per unit of risk. Gaztransport Technigaz SA is currently generating about -0.2 per unit of risk. If you would invest 91,000 in KENEDIX OFFICE INV on September 24, 2024 and sell it today you would lose (3,000) from holding KENEDIX OFFICE INV or give up 3.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KENEDIX OFFICE INV vs. Gaztransport Technigaz SA
Performance |
| Timeline |
| KENEDIX OFFICE INV |
| Gaztransport Technigaz |
KENEDIX OFFICE and Gaztransport Technigaz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KENEDIX OFFICE and Gaztransport Technigaz
The main advantage of trading using opposite KENEDIX OFFICE and Gaztransport Technigaz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KENEDIX OFFICE position performs unexpectedly, Gaztransport Technigaz 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 Technigaz will offset losses from the drop in Gaztransport Technigaz's long position.| KENEDIX OFFICE vs. Apple Inc | KENEDIX OFFICE vs. Apple Inc | KENEDIX OFFICE vs. Apple Inc | KENEDIX OFFICE vs. Apple Inc |
| Gaztransport Technigaz vs. Schlumberger Limited | Gaztransport Technigaz vs. Halliburton | Gaztransport Technigaz vs. Halliburton | Gaztransport Technigaz vs. Baker Hughes Co |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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