Correlation Between Transportadora and 655844CJ5

Can any of the company-specific risk be diversified away by investing in both Transportadora and 655844CJ5 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 655844CJ5 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 NSC 41 15 MAY 21, you can compare the effects of market volatilities on Transportadora and 655844CJ5 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 655844CJ5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transportadora and 655844CJ5.

Diversification Opportunities for Transportadora and 655844CJ5

-0.76

Correlation Coefficient

Transportadora  655844CJ5

Pay attention - limited upside

The 3 months correlation between Transportadora and 655844CJ5 is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Transportadora de Gas and NSC 41 15 MAY 21 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NSC 41 15 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 655844CJ5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NSC 41 15 has no effect on the direction of Transportadora i.e., Transportadora and 655844CJ5 go up and down completely randomly.

Pair Corralation between Transportadora and 655844CJ5

Considering the 90-day investment horizon Transportadora de Gas is expected to generate 1.13 times more return on investment than 655844CJ5. However, Transportadora is 1.13 times more volatile than NSC 41 15 MAY 21. It trades about -0.09 of its potential returns per unit of risk. NSC 41 15 MAY 21 is currently generating about -0.17 per unit of risk. If you would invest  2,904  in Transportadora de Gas on September 24, 2024 and sell it today you would lose (129.00) from holding Transportadora de Gas or give up 4.44% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	85.0%
Values	Daily Returns

Transportadora de Gas  vs.  NSC 41 15 MAY 21

Transportadora de Gas

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Transportadora de Gas are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady technical and fundamental indicators, Transportadora unveiled solid returns over the last few months and may actually be approaching a breakup point.

NSC 41 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NSC 41 15 MAY 21 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for NSC 41 15 MAY 21 investors.

Pair Trading with Transportadora and 655844CJ5

The main advantage of trading using opposite Transportadora and 655844CJ5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transportadora position performs unexpectedly, 655844CJ5 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 655844CJ5 will offset losses from the drop in 655844CJ5's long position.

The idea behind Transportadora de Gas and NSC 41 15 MAY 21 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..