Correlation Between Exail Technologies and Gaztransport Technigaz
Can any of the company-specific risk be diversified away by investing in both Exail Technologies 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 Exail Technologies and Gaztransport Technigaz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exail Technologies SA and Gaztransport Technigaz SAS, you can compare the effects of market volatilities on Exail Technologies 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 Exail Technologies with a short position of Gaztransport Technigaz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exail Technologies and Gaztransport Technigaz.
Diversification Opportunities for Exail Technologies and Gaztransport Technigaz
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Exail and Gaztransport is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Exail Technologies SA and Gaztransport Technigaz SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport Technigaz and Exail Technologies 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 Exail Technologies SA 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 Exail Technologies i.e., Exail Technologies and Gaztransport Technigaz go up and down completely randomly.
Pair Corralation between Exail Technologies and Gaztransport Technigaz
Assuming the 90 days trading horizon Exail Technologies SA is expected to generate 1.46 times more return on investment than Gaztransport Technigaz. However, Exail Technologies is 1.46 times more volatile than Gaztransport Technigaz SAS. It trades about -0.1 of its potential returns per unit of risk. Gaztransport Technigaz SAS is currently generating about -0.21 per unit of risk. If you would invest 1,798 in Exail Technologies SA on September 26, 2024 and sell it today you would lose (76.00) from holding Exail Technologies SA or give up 4.23% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Exail Technologies SA vs. Gaztransport Technigaz SAS
Performance |
Timeline |
Exail Technologies |
Gaztransport Technigaz |
Exail Technologies and Gaztransport Technigaz Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Exail Technologies and Gaztransport Technigaz
The main advantage of trading using opposite Exail Technologies and Gaztransport Technigaz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exail Technologies 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.Exail Technologies vs. Safran SA | Exail Technologies vs. Dassault Systemes SE | Exail Technologies vs. Dassault Aviation SA | Exail Technologies vs. Vinci SA |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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