Correlation Between Bet At and Gaztransport Technigaz

Can any of the company-specific risk be diversified away by investing in both Bet At 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 Bet At and Gaztransport Technigaz into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between bet at home AG and Gaztransport Technigaz SA, you can compare the effects of market volatilities on Bet At 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 Bet At with a short position of Gaztransport Technigaz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bet At and Gaztransport Technigaz.

Diversification Opportunities for Bet At and Gaztransport Technigaz

-0.54

Correlation Coefficient

Bet At  Gaztransport Technigaz

Excellent diversification

The 3 months correlation between Bet and Gaztransport is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding bet at home AG and Gaztransport Technigaz SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport Technigaz and Bet At 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 bet at home AG 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 Bet At i.e., Bet At and Gaztransport Technigaz go up and down completely randomly.

Pair Corralation between Bet At and Gaztransport Technigaz

Assuming the 90 days trading horizon bet at home AG is expected to under-perform the Gaztransport Technigaz. In addition to that, Bet At is 1.27 times more volatile than Gaztransport Technigaz SA. It trades about -0.04 of its total potential returns per unit of risk. Gaztransport Technigaz SA is currently generating about 0.09 per unit of volatility. If you would invest  12,628  in Gaztransport Technigaz SA on October 12, 2024 and sell it today you would earn a total of  1,222  from holding Gaztransport Technigaz SA or generate 9.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.33%
Values	Daily Returns

bet at home AG  vs.  Gaztransport Technigaz SA

bet at home

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days bet at home AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Bet At is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Gaztransport Technigaz

Risk-Adjusted Performance

7 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Gaztransport Technigaz SA are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Gaztransport Technigaz may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Bet At and Gaztransport Technigaz

The main advantage of trading using opposite Bet At and Gaztransport Technigaz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bet At 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.

The idea behind bet at home AG and Gaztransport Technigaz SA 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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..