Correlation Between Takkt AG and Gaztransport Technigaz
Can any of the company-specific risk be diversified away by investing in both Takkt AG and Gaztransport Technigaz 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 Takkt AG and Gaztransport Technigaz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Takkt AG and Gaztransport Technigaz SA, you can compare the effects of market volatilities on Takkt AG and Gaztransport Technigaz 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 Takkt AG with a short position of Gaztransport Technigaz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Takkt AG and Gaztransport Technigaz.
Diversification Opportunities for Takkt AG and Gaztransport Technigaz
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Takkt and Gaztransport is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Takkt AG and Gaztransport Technigaz SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport Technigaz and Takkt AG 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 Takkt AG are associated (or correlated) with Gaztransport Technigaz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaztransport Technigaz has no effect on the direction of Takkt AG i.e., Takkt AG and Gaztransport Technigaz go up and down completely randomly.
Pair Corralation between Takkt AG and Gaztransport Technigaz
If you would invest 9,970 in Gaztransport Technigaz SA on September 3, 2024 and sell it today you would earn a total of 3,790 from holding Gaztransport Technigaz SA or generate 38.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Takkt AG vs. Gaztransport Technigaz SA
Performance |
| Timeline |
| Takkt AG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Gaztransport Technigaz |
Takkt AG and Gaztransport Technigaz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Takkt AG and Gaztransport Technigaz
The main advantage of trading using opposite Takkt AG and Gaztransport Technigaz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Takkt AG position performs unexpectedly, Gaztransport Technigaz 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 Technigaz will offset losses from the drop in Gaztransport Technigaz's long position.| Takkt AG vs. T MOBILE INCDL 00001 | Takkt AG vs. TEXAS ROADHOUSE | Takkt AG vs. Texas Roadhouse | Takkt AG vs. ScanSource |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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