Correlation Between Metalliance and Gaztransport Technigaz

Can any of the company-specific risk be diversified away by investing in both Metalliance 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 Metalliance and Gaztransport Technigaz into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Metalliance SA and Gaztransport Technigaz SAS, you can compare the effects of market volatilities on Metalliance 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 Metalliance with a short position of Gaztransport Technigaz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metalliance and Gaztransport Technigaz.

Diversification Opportunities for Metalliance and Gaztransport Technigaz

0.0

Correlation Coefficient

Metalliance  Gaztransport Technigaz

Pay attention - limited upside

The 3 months correlation between Metalliance and Gaztransport is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Metalliance 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 Metalliance 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 Metalliance 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 Metalliance i.e., Metalliance and Gaztransport Technigaz go up and down completely randomly.

Pair Corralation between Metalliance and Gaztransport Technigaz

If you would invest  14,382  in Gaztransport Technigaz SAS on May 8, 2025 and sell it today you would earn a total of  2,578  from holding Gaztransport Technigaz SAS or generate 17.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Metalliance SA  vs.  Gaztransport Technigaz SAS

Metalliance SA

Risk-Adjusted Performance

Weakest

Over the last 90 days Metalliance SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Metalliance is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Gaztransport Technigaz

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Gaztransport Technigaz SAS are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Gaztransport Technigaz sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Metalliance and Gaztransport Technigaz

The main advantage of trading using opposite Metalliance and Gaztransport Technigaz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metalliance 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.

The idea behind Metalliance SA and Gaztransport Technigaz SAS 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.

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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.