Correlation Between TechnipFMC PLC and Bertrandt
Can any of the company-specific risk be diversified away by investing in both TechnipFMC PLC and Bertrandt 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 Bertrandt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TechnipFMC PLC and Bertrandt AG, you can compare the effects of market volatilities on TechnipFMC PLC and Bertrandt 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 Bertrandt. Check out your portfolio center. Please also check ongoing floating volatility patterns of TechnipFMC PLC and Bertrandt.
Diversification Opportunities for TechnipFMC PLC and Bertrandt
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TechnipFMC and Bertrandt is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding TechnipFMC PLC and Bertrandt AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bertrandt AG 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 Bertrandt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bertrandt AG has no effect on the direction of TechnipFMC PLC i.e., TechnipFMC PLC and Bertrandt go up and down completely randomly.
Pair Corralation between TechnipFMC PLC and Bertrandt
Assuming the 90 days trading horizon TechnipFMC PLC is expected to generate 2.16 times less return on investment than Bertrandt. But when comparing it to its historical volatility, TechnipFMC PLC is 1.63 times less risky than Bertrandt. It trades about 0.23 of its potential returns per unit of risk. Bertrandt AG is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 1,600 in Bertrandt AG on September 14, 2024 and sell it today you would earn a total of 318.00 from holding Bertrandt AG or generate 19.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
TechnipFMC PLC vs. Bertrandt AG
Performance |
| Timeline |
| TechnipFMC PLC |
| Bertrandt AG |
TechnipFMC PLC and Bertrandt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TechnipFMC PLC and Bertrandt
The main advantage of trading using opposite TechnipFMC PLC and Bertrandt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TechnipFMC PLC position performs unexpectedly, Bertrandt 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 Bertrandt will offset losses from the drop in Bertrandt's long position.| TechnipFMC PLC vs. Liberty Media Corp | TechnipFMC PLC vs. Symphony Environmental Technologies | TechnipFMC PLC vs. Dentsply Sirona | TechnipFMC PLC vs. Intermediate Capital Group |
| Bertrandt vs. Blackrock World Mining | Bertrandt vs. Panther Metals PLC | Bertrandt vs. Made Tech Group | Bertrandt vs. TechnipFMC PLC |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |