Correlation Between Transportadora and Strix Group
Can any of the company-specific risk be diversified away by investing in both Transportadora and Strix Group 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 Transportadora and Strix Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transportadora de Gas and Strix Group Plc, you can compare the effects of market volatilities on Transportadora and Strix Group 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 Transportadora with a short position of Strix Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transportadora and Strix Group.
Diversification Opportunities for Transportadora and Strix Group
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Transportadora and Strix is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Transportadora de Gas and Strix Group Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strix Group Plc and Transportadora 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 Transportadora de Gas are associated (or correlated) with Strix Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strix Group Plc has no effect on the direction of Transportadora i.e., Transportadora and Strix Group go up and down completely randomly.
Pair Corralation between Transportadora and Strix Group
Assuming the 90 days trading horizon Transportadora de Gas is expected to generate 1.61 times more return on investment than Strix Group. However, Transportadora is 1.61 times more volatile than Strix Group Plc. It trades about 0.21 of its potential returns per unit of risk. Strix Group Plc is currently generating about -0.31 per unit of risk. If you would invest 2,160 in Transportadora de Gas on September 13, 2024 and sell it today you would earn a total of 500.00 from holding Transportadora de Gas or generate 23.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Transportadora de Gas vs. Strix Group Plc
Performance |
| Timeline |
| Transportadora de Gas |
| Strix Group Plc |
Transportadora and Strix Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transportadora and Strix Group
The main advantage of trading using opposite Transportadora and Strix Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transportadora position performs unexpectedly, Strix Group 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 Strix Group will offset losses from the drop in Strix Group's long position.| Transportadora vs. Public Storage | Transportadora vs. GOLD ROAD RES | Transportadora vs. EVS Broadcast Equipment | Transportadora vs. Texas Roadhouse |
| Strix Group vs. ITALIAN WINE BRANDS | Strix Group vs. SANOK RUBBER ZY | Strix Group vs. The Yokohama Rubber | Strix Group vs. BRIT AMER TOBACCO |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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