Correlation Between Transportadora and Garcia Reguera
Can any of the company-specific risk be diversified away by investing in both Transportadora and Garcia Reguera 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 Garcia Reguera 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 Garcia Reguera SA, you can compare the effects of market volatilities on Transportadora and Garcia Reguera 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 Garcia Reguera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transportadora and Garcia Reguera.
Diversification Opportunities for Transportadora and Garcia Reguera
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Transportadora and Garcia is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Transportadora de Gas and Garcia Reguera SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Garcia Reguera SA 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 Garcia Reguera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Garcia Reguera SA has no effect on the direction of Transportadora i.e., Transportadora and Garcia Reguera go up and down completely randomly.
Pair Corralation between Transportadora and Garcia Reguera
Assuming the 90 days trading horizon Transportadora de Gas is expected to generate 3.76 times more return on investment than Garcia Reguera. However, Transportadora is 3.76 times more volatile than Garcia Reguera SA. It trades about 0.11 of its potential returns per unit of risk. Garcia Reguera SA is currently generating about -0.05 per unit of risk. If you would invest 445,170 in Transportadora de Gas on September 13, 2024 and sell it today you would earn a total of 205,830 from holding Transportadora de Gas or generate 46.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Transportadora de Gas vs. Garcia Reguera SA
Performance |
| Timeline |
| Transportadora de Gas |
| Garcia Reguera SA |
Transportadora and Garcia Reguera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transportadora and Garcia Reguera
The main advantage of trading using opposite Transportadora and Garcia Reguera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transportadora position performs unexpectedly, Garcia Reguera 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 Garcia Reguera will offset losses from the drop in Garcia Reguera's long position.| Transportadora vs. Telecom Argentina | Transportadora vs. Compania de Transporte | Transportadora vs. Harmony Gold Mining | Transportadora vs. Agrometal SAI |
| Garcia Reguera vs. Alibaba Group Holding | Garcia Reguera vs. Apple Inc DRC | Garcia Reguera vs. Alphabet Inc Class A CEDEAR | Garcia Reguera vs. Amazon Inc |
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 Stocks Directory module to find actively traded stocks across global markets.
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