Correlation Between Trainline Plc and Gaztransport
Can any of the company-specific risk be diversified away by investing in both Trainline Plc 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 Trainline Plc and Gaztransport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trainline Plc and Gaztransport et Technigaz, you can compare the effects of market volatilities on Trainline Plc 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 Trainline Plc with a short position of Gaztransport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trainline Plc and Gaztransport.
Diversification Opportunities for Trainline Plc and Gaztransport
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Trainline and Gaztransport is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Trainline Plc 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 Trainline Plc 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 Trainline Plc 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 Trainline Plc i.e., Trainline Plc and Gaztransport go up and down completely randomly.
Pair Corralation between Trainline Plc and Gaztransport
Assuming the 90 days trading horizon Trainline Plc is expected to generate 1.3 times more return on investment than Gaztransport. However, Trainline Plc is 1.3 times more volatile than Gaztransport et Technigaz. It trades about 0.1 of its potential returns per unit of risk. Gaztransport et Technigaz is currently generating about 0.04 per unit of risk. If you would invest 32,440 in Trainline Plc on September 1, 2024 and sell it today you would earn a total of 8,340 from holding Trainline Plc or generate 25.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trainline Plc vs. Gaztransport et Technigaz
Performance |
| Timeline |
| Trainline Plc |
| Gaztransport et Technigaz |
Trainline Plc and Gaztransport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trainline Plc and Gaztransport
The main advantage of trading using opposite Trainline Plc and Gaztransport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trainline Plc 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.| Trainline Plc vs. Herald Investment Trust | Trainline Plc vs. Molson Coors Beverage | Trainline Plc vs. Livermore Investments Group | Trainline Plc vs. Kinnevik Investment AB |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |