Correlation Between Ocean Harvest and Gaztransport
Can any of the company-specific risk be diversified away by investing in both Ocean Harvest 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 Ocean Harvest and Gaztransport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ocean Harvest Technology and Gaztransport et Technigaz, you can compare the effects of market volatilities on Ocean Harvest 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 Ocean Harvest with a short position of Gaztransport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ocean Harvest and Gaztransport.
Diversification Opportunities for Ocean Harvest and Gaztransport
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ocean and Gaztransport is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Ocean Harvest Technology 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 Ocean Harvest 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 Ocean Harvest Technology 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 Ocean Harvest i.e., Ocean Harvest and Gaztransport go up and down completely randomly.
Pair Corralation between Ocean Harvest and Gaztransport
Assuming the 90 days trading horizon Ocean Harvest Technology is expected to under-perform the Gaztransport. In addition to that, Ocean Harvest is 1.22 times more volatile than Gaztransport et Technigaz. It trades about -0.09 of its total potential returns per unit of risk. Gaztransport et Technigaz is currently generating about 0.14 per unit of volatility. If you would invest 13,340 in Gaztransport et Technigaz on September 2, 2024 and sell it today you would earn a total of 450.00 from holding Gaztransport et Technigaz or generate 3.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ocean Harvest Technology vs. Gaztransport et Technigaz
Performance |
| Timeline |
| Ocean Harvest Technology |
| Gaztransport et Technigaz |
Ocean Harvest and Gaztransport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ocean Harvest and Gaztransport
The main advantage of trading using opposite Ocean Harvest and Gaztransport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ocean Harvest 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.| Ocean Harvest vs. GoldMining | Ocean Harvest vs. Invesco Physical Silver | Ocean Harvest vs. Westlake Chemical Corp | Ocean Harvest vs. Games Workshop Group |
| Gaztransport vs. Uniper SE | Gaztransport vs. Mulberry Group PLC | Gaztransport vs. London Security Plc | Gaztransport vs. Triad Group PLC |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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