Correlation Between Werewolf Therapeutics and Gaztransport Technigaz

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Can any of the company-specific risk be diversified away by investing in both Werewolf Therapeutics 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 Werewolf Therapeutics and Gaztransport Technigaz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Werewolf Therapeutics and Gaztransport Technigaz SA, you can compare the effects of market volatilities on Werewolf Therapeutics 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 Werewolf Therapeutics with a short position of Gaztransport Technigaz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Werewolf Therapeutics and Gaztransport Technigaz.

Diversification Opportunities for Werewolf Therapeutics and Gaztransport Technigaz

-0.77
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Werewolf and Gaztransport is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Werewolf Therapeutics and Gaztransport Technigaz SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport Technigaz and Werewolf Therapeutics 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 Werewolf Therapeutics 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 Werewolf Therapeutics i.e., Werewolf Therapeutics and Gaztransport Technigaz go up and down completely randomly.

Pair Corralation between Werewolf Therapeutics and Gaztransport Technigaz

Given the investment horizon of 90 days Werewolf Therapeutics is expected to under-perform the Gaztransport Technigaz. In addition to that, Werewolf Therapeutics is 3.69 times more volatile than Gaztransport Technigaz SA. It trades about -0.07 of its total potential returns per unit of risk. Gaztransport Technigaz SA is currently generating about 0.08 per unit of volatility. If you would invest  3,686  in Gaztransport Technigaz SA on September 10, 2025 and sell it today you would earn a total of  314.00  from holding Gaztransport Technigaz SA or generate 8.52% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy98.44%
ValuesDaily Returns

Werewolf Therapeutics  vs.  Gaztransport Technigaz SA

 Performance 
       Timeline  
Werewolf Therapeutics 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Werewolf Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in January 2026. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.
Gaztransport Technigaz 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Gaztransport Technigaz SA are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Gaztransport Technigaz may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Werewolf Therapeutics and Gaztransport Technigaz Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Werewolf Therapeutics and Gaztransport Technigaz

The main advantage of trading using opposite Werewolf Therapeutics and Gaztransport Technigaz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Werewolf Therapeutics 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 Werewolf Therapeutics and Gaztransport Technigaz SA 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

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