Correlation Between Gaztransport Technigaz and Acticor Biotech
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and Acticor Biotech 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 Acticor Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaztransport Technigaz SAS and Acticor Biotech SAS, you can compare the effects of market volatilities on Gaztransport Technigaz and Acticor Biotech 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 Acticor Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and Acticor Biotech.
Diversification Opportunities for Gaztransport Technigaz and Acticor Biotech
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gaztransport and Acticor is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SAS and Acticor Biotech SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acticor Biotech SAS 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 SAS are associated (or correlated) with Acticor Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acticor Biotech SAS has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and Acticor Biotech go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and Acticor Biotech
If you would invest 13,350 in Gaztransport Technigaz SAS on October 11, 2024 and sell it today you would earn a total of 800.00 from holding Gaztransport Technigaz SAS or generate 5.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Gaztransport Technigaz SAS vs. Acticor Biotech SAS
Performance |
Timeline |
Gaztransport Technigaz |
Acticor Biotech SAS |
Gaztransport Technigaz and Acticor Biotech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gaztransport Technigaz and Acticor Biotech
The main advantage of trading using opposite Gaztransport Technigaz and Acticor Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, Acticor Biotech 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 Acticor Biotech will offset losses from the drop in Acticor Biotech's long position.Gaztransport Technigaz vs. Rubis SCA | Gaztransport Technigaz vs. Teleperformance SE | Gaztransport Technigaz vs. Sartorius Stedim Biotech | Gaztransport Technigaz vs. Nexity |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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