Correlation Between Gaztransport Technigaz and WESTERN REFINING

Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and WESTERN REFINING 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 WESTERN REFINING 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 WESTERN REFINING, you can compare the effects of market volatilities on Gaztransport Technigaz and WESTERN REFINING 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 WESTERN REFINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and WESTERN REFINING.

Diversification Opportunities for Gaztransport Technigaz and WESTERN REFINING

0.0

Correlation Coefficient

Gaztransport Technigaz  WESTERN REFINING

Pay attention - limited upside

The 3 months correlation between Gaztransport and WESTERN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and WESTERN REFINING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WESTERN REFINING 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 WESTERN REFINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WESTERN REFINING has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and WESTERN REFINING go up and down completely randomly.

Pair Corralation between Gaztransport Technigaz and WESTERN REFINING

If you would invest  12,780  in Gaztransport Technigaz SA on December 22, 2024 and sell it today you would earn a total of  2,040  from holding Gaztransport Technigaz SA or generate 15.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

Gaztransport Technigaz SA  vs.  WESTERN REFINING

Gaztransport Technigaz

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Gaztransport Technigaz SA are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Gaztransport Technigaz reported solid returns over the last few months and may actually be approaching a breakup point.

WESTERN REFINING

Risk-Adjusted Performance

Very Weak

Over the last 90 days WESTERN REFINING has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, WESTERN REFINING is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Gaztransport Technigaz and WESTERN REFINING

The main advantage of trading using opposite Gaztransport Technigaz and WESTERN REFINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, WESTERN REFINING 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 WESTERN REFINING will offset losses from the drop in WESTERN REFINING's long position.

The idea behind Gaztransport Technigaz SA and WESTERN REFINING pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.