Correlation Between Transportadora and Femasys

Can any of the company-specific risk be diversified away by investing in both Transportadora and Femasys 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 Femasys 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 Femasys, you can compare the effects of market volatilities on Transportadora and Femasys 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 Femasys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transportadora and Femasys.

Diversification Opportunities for Transportadora and Femasys

-0.47

Correlation Coefficient

Transportadora  Femasys

Very good diversification

The 3 months correlation between Transportadora and Femasys is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Transportadora de Gas and Femasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Femasys 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 Femasys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Femasys has no effect on the direction of Transportadora i.e., Transportadora and Femasys go up and down completely randomly.

Pair Corralation between Transportadora and Femasys

Considering the 90-day investment horizon Transportadora de Gas is expected to generate 0.7 times more return on investment than Femasys. However, Transportadora de Gas is 1.44 times less risky than Femasys. It trades about 0.28 of its potential returns per unit of risk. Femasys is currently generating about 0.02 per unit of risk. If you would invest  2,082  in Transportadora de Gas on October 11, 2024 and sell it today you would earn a total of  1,195  from holding Transportadora de Gas or generate 57.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Transportadora de Gas  vs.  Femasys

Transportadora de Gas

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Transportadora de Gas are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak technical and fundamental indicators, Transportadora unveiled solid returns over the last few months and may actually be approaching a breakup point.

Femasys

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Femasys are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong primary indicators, Femasys is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Transportadora and Femasys

The main advantage of trading using opposite Transportadora and Femasys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transportadora position performs unexpectedly, Femasys 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 Femasys will offset losses from the drop in Femasys' long position.

The idea behind Transportadora de Gas and Femasys 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.