Correlation Between Transportadora and STRA Hannoversche
Can any of the company-specific risk be diversified away by investing in both Transportadora and STRA Hannoversche 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 Transportadora and STRA Hannoversche into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transportadora de Gas and STRA Hannoversche Verkehrsbetriebe, you can compare the effects of market volatilities on Transportadora and STRA Hannoversche 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 Transportadora with a short position of STRA Hannoversche. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transportadora and STRA Hannoversche.
Diversification Opportunities for Transportadora and STRA Hannoversche
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Transportadora and STRA is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Transportadora de Gas and STRA Hannoversche Verkehrsbetr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STRA Hannoversche and Transportadora 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 Transportadora de Gas are associated (or correlated) with STRA Hannoversche. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STRA Hannoversche has no effect on the direction of Transportadora i.e., Transportadora and STRA Hannoversche go up and down completely randomly.
Pair Corralation between Transportadora and STRA Hannoversche
Assuming the 90 days trading horizon Transportadora de Gas is expected to generate 0.91 times more return on investment than STRA Hannoversche. However, Transportadora de Gas is 1.1 times less risky than STRA Hannoversche. It trades about 0.11 of its potential returns per unit of risk. STRA Hannoversche Verkehrsbetriebe is currently generating about -0.02 per unit of risk. If you would invest 1,680 in Transportadora de Gas on September 23, 2024 and sell it today you would earn a total of 960.00 from holding Transportadora de Gas or generate 57.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Transportadora de Gas vs. STRA Hannoversche Verkehrsbetr
Performance |
Timeline |
Transportadora de Gas |
STRA Hannoversche |
Transportadora and STRA Hannoversche Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Transportadora and STRA Hannoversche
The main advantage of trading using opposite Transportadora and STRA Hannoversche positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transportadora position performs unexpectedly, STRA Hannoversche 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 STRA Hannoversche will offset losses from the drop in STRA Hannoversche's long position.Transportadora vs. Apple Inc | Transportadora vs. Apple Inc | Transportadora vs. Apple Inc | Transportadora vs. Apple Inc |
STRA Hannoversche vs. Transportadora de Gas | STRA Hannoversche vs. Host Hotels Resorts | STRA Hannoversche vs. Xenia Hotels Resorts | STRA Hannoversche vs. Pebblebrook Hotel Trust |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |