Correlation Between AECOM TECHNOLOGY and GAZTRTECHNIUADR1/5EO01

Can any of the company-specific risk be diversified away by investing in both AECOM TECHNOLOGY and GAZTRTECHNIUADR1/5EO01 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 AECOM TECHNOLOGY and GAZTRTECHNIUADR1/5EO01 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AECOM TECHNOLOGY and GAZTRTECHNIUADR15EO01, you can compare the effects of market volatilities on AECOM TECHNOLOGY and GAZTRTECHNIUADR1/5EO01 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 AECOM TECHNOLOGY with a short position of GAZTRTECHNIUADR1/5EO01. Check out your portfolio center. Please also check ongoing floating volatility patterns of AECOM TECHNOLOGY and GAZTRTECHNIUADR1/5EO01.

Diversification Opportunities for AECOM TECHNOLOGY and GAZTRTECHNIUADR1/5EO01

0.87

Correlation Coefficient

AECOM TECHNOLOGY  GAZTRTECHNIUADR1/5EO01

Very poor diversification

The 3 months correlation between AECOM and GAZTRTECHNIUADR1/5EO01 is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding AECOM TECHNOLOGY and GAZTRTECHNIUADR15EO01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAZTRTECHNIUADR1/5EO01 and AECOM TECHNOLOGY 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 AECOM TECHNOLOGY are associated (or correlated) with GAZTRTECHNIUADR1/5EO01. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAZTRTECHNIUADR1/5EO01 has no effect on the direction of AECOM TECHNOLOGY i.e., AECOM TECHNOLOGY and GAZTRTECHNIUADR1/5EO01 go up and down completely randomly.

Pair Corralation between AECOM TECHNOLOGY and GAZTRTECHNIUADR1/5EO01

Assuming the 90 days trading horizon AECOM TECHNOLOGY is expected to generate 1.58 times less return on investment than GAZTRTECHNIUADR1/5EO01. But when comparing it to its historical volatility, AECOM TECHNOLOGY is 1.23 times less risky than GAZTRTECHNIUADR1/5EO01. It trades about 0.18 of its potential returns per unit of risk. GAZTRTECHNIUADR15EO01 is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  2,617  in GAZTRTECHNIUADR15EO01 on April 24, 2025 and sell it today you would earn a total of  663.00  from holding GAZTRTECHNIUADR15EO01 or generate 25.33% return on investment over 90 days.

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

AECOM TECHNOLOGY  vs.  GAZTRTECHNIUADR15EO01

AECOM TECHNOLOGY

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AECOM TECHNOLOGY are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, AECOM TECHNOLOGY exhibited solid returns over the last few months and may actually be approaching a breakup point.

GAZTRTECHNIUADR1/5EO01

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in GAZTRTECHNIUADR15EO01 are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain technical and fundamental indicators, GAZTRTECHNIUADR1/5EO01 reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AECOM TECHNOLOGY and GAZTRTECHNIUADR1/5EO01

The main advantage of trading using opposite AECOM TECHNOLOGY and GAZTRTECHNIUADR1/5EO01 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AECOM TECHNOLOGY position performs unexpectedly, GAZTRTECHNIUADR1/5EO01 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 GAZTRTECHNIUADR1/5EO01 will offset losses from the drop in GAZTRTECHNIUADR1/5EO01's long position.

The idea behind AECOM TECHNOLOGY and GAZTRTECHNIUADR15EO01 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.