Correlation Between Gaztransport Technigaz and FEMALE HEALTH
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and FEMALE HEALTH 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 Gaztransport Technigaz and FEMALE HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaztransport Technigaz SA and FEMALE HEALTH, you can compare the effects of market volatilities on Gaztransport Technigaz and FEMALE HEALTH 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 Gaztransport Technigaz with a short position of FEMALE HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and FEMALE HEALTH.
Diversification Opportunities for Gaztransport Technigaz and FEMALE HEALTH
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gaztransport and FEMALE is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and FEMALE HEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEMALE HEALTH and Gaztransport Technigaz 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 Gaztransport Technigaz SA are associated (or correlated) with FEMALE HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEMALE HEALTH has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and FEMALE HEALTH go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and FEMALE HEALTH
Assuming the 90 days horizon Gaztransport Technigaz SA is expected to generate 0.38 times more return on investment than FEMALE HEALTH. However, Gaztransport Technigaz SA is 2.64 times less risky than FEMALE HEALTH. It trades about 0.01 of its potential returns per unit of risk. FEMALE HEALTH is currently generating about -0.02 per unit of risk. If you would invest 12,774 in Gaztransport Technigaz SA on September 26, 2024 and sell it today you would earn a total of 6.00 from holding Gaztransport Technigaz SA or generate 0.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Gaztransport Technigaz SA vs. FEMALE HEALTH
Performance |
Timeline |
Gaztransport Technigaz |
FEMALE HEALTH |
Gaztransport Technigaz and FEMALE HEALTH Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gaztransport Technigaz and FEMALE HEALTH
The main advantage of trading using opposite Gaztransport Technigaz and FEMALE HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, FEMALE HEALTH 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 FEMALE HEALTH will offset losses from the drop in FEMALE HEALTH's long position.Gaztransport Technigaz vs. CeoTronics AG | Gaztransport Technigaz vs. CEOTRONICS | Gaztransport Technigaz vs. AGF Management Limited | Gaztransport Technigaz vs. THRACE PLASTICS |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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