Correlation Between Fill Up and Gaztransport Technigaz

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

By analyzing existing cross correlation between Fill Up Media and Gaztransport Technigaz SAS, you can compare the effects of market volatilities on Fill Up 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 Fill Up with a short position of Gaztransport Technigaz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fill Up and Gaztransport Technigaz.

Diversification Opportunities for Fill Up and Gaztransport Technigaz

0.15

Correlation Coefficient

Fill Up  Gaztransport Technigaz

Average diversification

The 3 months correlation between Fill and Gaztransport is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Fill Up Media and Gaztransport Technigaz SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport Technigaz and Fill Up 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 Fill Up Media 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 Fill Up i.e., Fill Up and Gaztransport Technigaz go up and down completely randomly.

Pair Corralation between Fill Up and Gaztransport Technigaz

Assuming the 90 days trading horizon Fill Up Media is expected to under-perform the Gaztransport Technigaz. But the stock apears to be less risky and, when comparing its historical volatility, Fill Up Media is 1.72 times less risky than Gaztransport Technigaz. The stock trades about -0.22 of its potential returns per unit of risk. The Gaztransport Technigaz SAS is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest  12,980  in Gaztransport Technigaz SAS on October 26, 2024 and sell it today you would earn a total of  1,840  from holding Gaztransport Technigaz SAS or generate 14.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Fill Up Media  vs.  Gaztransport Technigaz SAS

Fill Up Media

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fill Up Media are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Fill Up may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Gaztransport Technigaz

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Gaztransport Technigaz SAS are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Gaztransport Technigaz may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Fill Up and Gaztransport Technigaz

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

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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.