Correlation Between TechnipFMC PLC and SEB SA
Can any of the company-specific risk be diversified away by investing in both TechnipFMC PLC and SEB SA 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 TechnipFMC PLC and SEB SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TechnipFMC PLC and SEB SA, you can compare the effects of market volatilities on TechnipFMC PLC and SEB SA 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 TechnipFMC PLC with a short position of SEB SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of TechnipFMC PLC and SEB SA.
Diversification Opportunities for TechnipFMC PLC and SEB SA
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TechnipFMC and SEB is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding TechnipFMC PLC and SEB SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEB SA and TechnipFMC PLC 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 TechnipFMC PLC are associated (or correlated) with SEB SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEB SA has no effect on the direction of TechnipFMC PLC i.e., TechnipFMC PLC and SEB SA go up and down completely randomly.
Pair Corralation between TechnipFMC PLC and SEB SA
Assuming the 90 days trading horizon TechnipFMC PLC is expected to generate 1.05 times more return on investment than SEB SA. However, TechnipFMC PLC is 1.05 times more volatile than SEB SA. It trades about 0.17 of its potential returns per unit of risk. SEB SA is currently generating about 0.04 per unit of risk. If you would invest 2,746 in TechnipFMC PLC on September 13, 2024 and sell it today you would earn a total of 174.00 from holding TechnipFMC PLC or generate 6.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
TechnipFMC PLC vs. SEB SA
Performance |
| Timeline |
| TechnipFMC PLC |
| SEB SA |
TechnipFMC PLC and SEB SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TechnipFMC PLC and SEB SA
The main advantage of trading using opposite TechnipFMC PLC and SEB SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TechnipFMC PLC position performs unexpectedly, SEB SA 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 SEB SA will offset losses from the drop in SEB SA's long position.| TechnipFMC PLC vs. Broadridge Financial Solutions | TechnipFMC PLC vs. Fair Oaks Income | TechnipFMC PLC vs. Alaska Air Group | TechnipFMC PLC vs. Mindflair Plc |
| SEB SA vs. Lowland Investment Co | SEB SA vs. Jacquet Metal Service | SEB SA vs. Empire Metals Limited | SEB SA vs. AMG Advanced Metallurgical |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |