Correlation Between TechnipFMC PLC and Ecclesiastical Insurance
Can any of the company-specific risk be diversified away by investing in both TechnipFMC PLC and Ecclesiastical Insurance 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 Ecclesiastical Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TechnipFMC PLC and Ecclesiastical Insurance Office, you can compare the effects of market volatilities on TechnipFMC PLC and Ecclesiastical Insurance 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 Ecclesiastical Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of TechnipFMC PLC and Ecclesiastical Insurance.
Diversification Opportunities for TechnipFMC PLC and Ecclesiastical Insurance
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TechnipFMC and Ecclesiastical is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding TechnipFMC PLC and Ecclesiastical Insurance Offic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ecclesiastical Insurance 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 Ecclesiastical Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ecclesiastical Insurance has no effect on the direction of TechnipFMC PLC i.e., TechnipFMC PLC and Ecclesiastical Insurance go up and down completely randomly.
Pair Corralation between TechnipFMC PLC and Ecclesiastical Insurance
Assuming the 90 days trading horizon TechnipFMC PLC is expected to generate 1.58 times more return on investment than Ecclesiastical Insurance. However, TechnipFMC PLC is 1.58 times more volatile than Ecclesiastical Insurance Office. It trades about 0.51 of its potential returns per unit of risk. Ecclesiastical Insurance Office is currently generating about -0.05 per unit of risk. If you would invest 2,402 in TechnipFMC PLC on August 31, 2024 and sell it today you would earn a total of 558.00 from holding TechnipFMC PLC or generate 23.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TechnipFMC PLC vs. Ecclesiastical Insurance Offic
Performance |
| Timeline |
| TechnipFMC PLC |
| Ecclesiastical Insurance |
TechnipFMC PLC and Ecclesiastical Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TechnipFMC PLC and Ecclesiastical Insurance
The main advantage of trading using opposite TechnipFMC PLC and Ecclesiastical Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TechnipFMC PLC position performs unexpectedly, Ecclesiastical Insurance 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 Ecclesiastical Insurance will offset losses from the drop in Ecclesiastical Insurance's long position.| TechnipFMC PLC vs. Universal Display Corp | TechnipFMC PLC vs. Playtech Plc | TechnipFMC PLC vs. Kinnevik Investment AB | TechnipFMC PLC vs. Flow Traders NV |
| Ecclesiastical Insurance vs. Samsung Electronics Co | Ecclesiastical Insurance vs. Samsung Electronics Co | Ecclesiastical Insurance vs. Hyundai Motor | Ecclesiastical Insurance vs. Toyota Motor Corp |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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