Correlation Between Focus Home and Gaztransport Technigaz
Can any of the company-specific risk be diversified away by investing in both Focus Home 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 Focus Home and Gaztransport Technigaz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Focus Home Interactive and Gaztransport Technigaz SA, you can compare the effects of market volatilities on Focus Home 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 Focus Home with a short position of Gaztransport Technigaz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Home and Gaztransport Technigaz.
Diversification Opportunities for Focus Home and Gaztransport Technigaz
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Focus and Gaztransport is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Focus Home Interactive and Gaztransport Technigaz SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport Technigaz and Focus Home 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 Focus Home Interactive 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 Focus Home i.e., Focus Home and Gaztransport Technigaz go up and down completely randomly.
Pair Corralation between Focus Home and Gaztransport Technigaz
Assuming the 90 days horizon Focus Home Interactive is expected to under-perform the Gaztransport Technigaz. In addition to that, Focus Home is 1.94 times more volatile than Gaztransport Technigaz SA. It trades about -0.03 of its total potential returns per unit of risk. Gaztransport Technigaz SA is currently generating about 0.02 per unit of volatility. If you would invest 12,618 in Gaztransport Technigaz SA on September 25, 2024 and sell it today you would earn a total of 142.00 from holding Gaztransport Technigaz SA or generate 1.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Focus Home Interactive vs. Gaztransport Technigaz SA
Performance |
Timeline |
Focus Home Interactive |
Gaztransport Technigaz |
Focus Home and Gaztransport Technigaz Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Focus Home and Gaztransport Technigaz
The main advantage of trading using opposite Focus Home and Gaztransport Technigaz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Home 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.Focus Home vs. Nintendo Co | Focus Home vs. Sea Limited | Focus Home vs. Electronic Arts | Focus Home vs. NEXON Co |
Gaztransport Technigaz vs. Halliburton | Gaztransport Technigaz vs. Halliburton | Gaztransport Technigaz vs. Baker Hughes Co | Gaztransport Technigaz vs. Tenaris SA |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |