Correlation Between G5 Entertainment and TotalEnergies
Can any of the company-specific risk be diversified away by investing in both G5 Entertainment and TotalEnergies 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 G5 Entertainment and TotalEnergies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G5 Entertainment AB and TotalEnergies SE, you can compare the effects of market volatilities on G5 Entertainment and TotalEnergies 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 G5 Entertainment with a short position of TotalEnergies. Check out your portfolio center. Please also check ongoing floating volatility patterns of G5 Entertainment and TotalEnergies.
Diversification Opportunities for G5 Entertainment and TotalEnergies
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 0QUS and TotalEnergies is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding G5 Entertainment AB and TotalEnergies SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TotalEnergies SE and G5 Entertainment 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 G5 Entertainment AB are associated (or correlated) with TotalEnergies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TotalEnergies SE has no effect on the direction of G5 Entertainment i.e., G5 Entertainment and TotalEnergies go up and down completely randomly.
Pair Corralation between G5 Entertainment and TotalEnergies
Assuming the 90 days trading horizon G5 Entertainment AB is expected to generate 0.74 times more return on investment than TotalEnergies. However, G5 Entertainment AB is 1.34 times less risky than TotalEnergies. It trades about 0.16 of its potential returns per unit of risk. TotalEnergies SE is currently generating about -0.05 per unit of risk. If you would invest 9,060 in G5 Entertainment AB on September 12, 2024 and sell it today you would earn a total of 2,000 from holding G5 Entertainment AB or generate 22.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
G5 Entertainment AB vs. TotalEnergies SE
Performance |
| Timeline |
| G5 Entertainment |
| TotalEnergies SE |
G5 Entertainment and TotalEnergies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G5 Entertainment and TotalEnergies
The main advantage of trading using opposite G5 Entertainment and TotalEnergies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G5 Entertainment position performs unexpectedly, TotalEnergies 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 TotalEnergies will offset losses from the drop in TotalEnergies' long position.| G5 Entertainment vs. Samsung Electronics Co | G5 Entertainment vs. Samsung Electronics Co | G5 Entertainment vs. Hyundai Motor | G5 Entertainment vs. Reliance Industries Ltd |
| TotalEnergies vs. Royal Bank of | TotalEnergies vs. LPKF Laser Electronics | TotalEnergies vs. OneSavings Bank PLC | TotalEnergies vs. GreenX Metals |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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