Correlation Between Lery Seafood and Gaztransport Technigaz
Can any of the company-specific risk be diversified away by investing in both Lery Seafood 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 Lery Seafood and Gaztransport Technigaz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lery Seafood Group and Gaztransport Technigaz SA, you can compare the effects of market volatilities on Lery Seafood 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 Lery Seafood with a short position of Gaztransport Technigaz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lery Seafood and Gaztransport Technigaz.
Diversification Opportunities for Lery Seafood and Gaztransport Technigaz
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lery and Gaztransport is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Lery Seafood Group and Gaztransport Technigaz SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport Technigaz and Lery Seafood 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 Lery Seafood Group 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 Lery Seafood i.e., Lery Seafood and Gaztransport Technigaz go up and down completely randomly.
Pair Corralation between Lery Seafood and Gaztransport Technigaz
Assuming the 90 days horizon Lery Seafood Group is expected to under-perform the Gaztransport Technigaz. But the stock apears to be less risky and, when comparing its historical volatility, Lery Seafood Group is 1.37 times less risky than Gaztransport Technigaz. The stock trades about -0.1 of its potential returns per unit of risk. The Gaztransport Technigaz SA is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 13,170 in Gaztransport Technigaz SA on October 16, 2024 and sell it today you would earn a total of 940.00 from holding Gaztransport Technigaz SA or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lery Seafood Group vs. Gaztransport Technigaz SA
Performance |
| Timeline |
| Lery Seafood Group |
| Gaztransport Technigaz |
Lery Seafood and Gaztransport Technigaz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lery Seafood and Gaztransport Technigaz
The main advantage of trading using opposite Lery Seafood and Gaztransport Technigaz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lery Seafood 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.| Lery Seafood vs. Yihai International Holding | Lery Seafood vs. Lery Seafood Group | Lery Seafood vs. Nisshin Seifun Group |
| Gaztransport Technigaz vs. Performance Food Group | Gaztransport Technigaz vs. National Beverage Corp | Gaztransport Technigaz vs. Cardinal Health | Gaztransport Technigaz vs. CLOVER HEALTH INV |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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