Correlation Between Gaztransport Technigaz and CSL

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

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

Diversification Opportunities for Gaztransport Technigaz and CSL

-0.2

Correlation Coefficient

Gaztransport Technigaz  CSL

Good diversification

The 3 months correlation between Gaztransport and CSL is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and CSL Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSL Limited 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 SA are associated (or correlated) with CSL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSL Limited has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and CSL go up and down completely randomly.

Pair Corralation between Gaztransport Technigaz and CSL

Assuming the 90 days horizon Gaztransport Technigaz SA is expected to generate 0.82 times more return on investment than CSL. However, Gaztransport Technigaz SA is 1.21 times less risky than CSL. It trades about 0.29 of its potential returns per unit of risk. CSL Limited is currently generating about 0.08 per unit of risk. If you would invest  13,175  in Gaztransport Technigaz SA on April 20, 2025 and sell it today you would earn a total of  3,345  from holding Gaztransport Technigaz SA or generate 25.39% return on investment over 90 days.

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

Gaztransport Technigaz SA  vs.  CSL Limited

Gaztransport Technigaz

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Gaztransport Technigaz SA are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Gaztransport Technigaz reported solid returns over the last few months and may actually be approaching a breakup point.

CSL Limited

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CSL Limited are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, CSL may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Gaztransport Technigaz and CSL

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

The idea behind Gaztransport Technigaz SA and CSL Limited 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.