Correlation Between Compagnie and Gaztransport Technigaz
Can any of the company-specific risk be diversified away by investing in both Compagnie 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 Compagnie and Gaztransport Technigaz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Compagnie de Chemins and Gaztransport Technigaz SAS, you can compare the effects of market volatilities on Compagnie 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 Compagnie with a short position of Gaztransport Technigaz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compagnie and Gaztransport Technigaz.
Diversification Opportunities for Compagnie and Gaztransport Technigaz
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Compagnie and Gaztransport is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Compagnie de Chemins and Gaztransport Technigaz SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport Technigaz and Compagnie 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 Compagnie de Chemins 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 Compagnie i.e., Compagnie and Gaztransport Technigaz go up and down completely randomly.
Pair Corralation between Compagnie and Gaztransport Technigaz
Assuming the 90 days trading horizon Compagnie de Chemins is expected to generate 2.6 times more return on investment than Gaztransport Technigaz. However, Compagnie is 2.6 times more volatile than Gaztransport Technigaz SAS. It trades about 0.13 of its potential returns per unit of risk. Gaztransport Technigaz SAS is currently generating about 0.07 per unit of risk. If you would invest 84,000 in Compagnie de Chemins on August 30, 2024 and sell it today you would earn a total of 6,000 from holding Compagnie de Chemins or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Compagnie de Chemins vs. Gaztransport Technigaz SAS
Performance |
| Timeline |
| Compagnie de Chemins |
| Gaztransport Technigaz |
Compagnie and Gaztransport Technigaz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compagnie and Gaztransport Technigaz
The main advantage of trading using opposite Compagnie and Gaztransport Technigaz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compagnie 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.| Compagnie vs. Metalliance SA | Compagnie vs. CMG Cleantech SA | Compagnie vs. Les Hotels Bav | Compagnie vs. Impulse Fitness Solutions |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |