Correlation Between Transportadora and Grupo Concesionario
Can any of the company-specific risk be diversified away by investing in both Transportadora and Grupo Concesionario 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 Grupo Concesionario 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 Grupo Concesionario del, you can compare the effects of market volatilities on Transportadora and Grupo Concesionario 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 Grupo Concesionario. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transportadora and Grupo Concesionario.
Diversification Opportunities for Transportadora and Grupo Concesionario
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Transportadora and Grupo is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Transportadora de Gas and Grupo Concesionario del in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Concesionario del 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 Grupo Concesionario. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Concesionario del has no effect on the direction of Transportadora i.e., Transportadora and Grupo Concesionario go up and down completely randomly.
Pair Corralation between Transportadora and Grupo Concesionario
Assuming the 90 days trading horizon Transportadora de Gas is expected to generate 0.91 times more return on investment than Grupo Concesionario. However, Transportadora de Gas is 1.1 times less risky than Grupo Concesionario. It trades about 0.2 of its potential returns per unit of risk. Grupo Concesionario del is currently generating about 0.06 per unit of risk. If you would invest 628,000 in Transportadora de Gas on September 19, 2024 and sell it today you would earn a total of 58,000 from holding Transportadora de Gas or generate 9.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Transportadora de Gas vs. Grupo Concesionario del
Performance |
| Timeline |
| Transportadora de Gas |
| Grupo Concesionario del |
Transportadora and Grupo Concesionario Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transportadora and Grupo Concesionario
The main advantage of trading using opposite Transportadora and Grupo Concesionario positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transportadora position performs unexpectedly, Grupo Concesionario 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 Grupo Concesionario will offset losses from the drop in Grupo Concesionario's long position.| Transportadora vs. Edesa Holding SA | Transportadora vs. Vista Energy, SAB | Transportadora vs. United States Steel | Transportadora vs. Pfizer Inc |
| Grupo Concesionario vs. Agrometal SAI | Grupo Concesionario vs. Compania de Transporte | Grupo Concesionario vs. Transportadora de Gas | Grupo Concesionario vs. Harmony Gold Mining |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Commodity Directory Find actively traded commodities issued by global exchanges |