Correlation Between Gaztransport and AP Moeller
Can any of the company-specific risk be diversified away by investing in both Gaztransport and AP Moeller 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 and AP Moeller into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaztransport et Technigaz and AP Moeller , you can compare the effects of market volatilities on Gaztransport and AP Moeller 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 with a short position of AP Moeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport and AP Moeller.
Diversification Opportunities for Gaztransport and AP Moeller
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gaztransport and 0O77 is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport et Technigaz and AP Moeller in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AP Moeller and Gaztransport 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 et Technigaz are associated (or correlated) with AP Moeller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AP Moeller has no effect on the direction of Gaztransport i.e., Gaztransport and AP Moeller go up and down completely randomly.
Pair Corralation between Gaztransport and AP Moeller
Assuming the 90 days trading horizon Gaztransport et Technigaz is expected to generate 0.74 times more return on investment than AP Moeller. However, Gaztransport et Technigaz is 1.35 times less risky than AP Moeller. It trades about 0.2 of its potential returns per unit of risk. AP Moeller is currently generating about -0.09 per unit of risk. If you would invest 12,993 in Gaztransport et Technigaz on October 9, 2024 and sell it today you would earn a total of 822.00 from holding Gaztransport et Technigaz or generate 6.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Gaztransport et Technigaz vs. AP Moeller
Performance |
Timeline |
Gaztransport et Technigaz |
AP Moeller |
Gaztransport and AP Moeller Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gaztransport and AP Moeller
The main advantage of trading using opposite Gaztransport and AP Moeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport position performs unexpectedly, AP Moeller 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 AP Moeller will offset losses from the drop in AP Moeller's long position.Gaztransport vs. Live Nation Entertainment | Gaztransport vs. Intermediate Capital Group | Gaztransport vs. G5 Entertainment AB | Gaztransport vs. Ecclesiastical Insurance Office |
AP Moeller vs. Games Workshop Group | AP Moeller vs. LPKF Laser Electronics | AP Moeller vs. Universal Health Services | AP Moeller vs. HCA Healthcare |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |