Correlation Between TOTAL ENERGY and China BlueChemical
Can any of the company-specific risk be diversified away by investing in both TOTAL ENERGY and China BlueChemical 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 TOTAL ENERGY and China BlueChemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TOTAL ENERGY SERVS and China BlueChemical, you can compare the effects of market volatilities on TOTAL ENERGY and China BlueChemical 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 TOTAL ENERGY with a short position of China BlueChemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of TOTAL ENERGY and China BlueChemical.
Diversification Opportunities for TOTAL ENERGY and China BlueChemical
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TOTAL and China is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding TOTAL ENERGY SERVS and China BlueChemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China BlueChemical and TOTAL ENERGY 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 TOTAL ENERGY SERVS are associated (or correlated) with China BlueChemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China BlueChemical has no effect on the direction of TOTAL ENERGY i.e., TOTAL ENERGY and China BlueChemical go up and down completely randomly.
Pair Corralation between TOTAL ENERGY and China BlueChemical
Assuming the 90 days horizon TOTAL ENERGY SERVS is expected to generate 0.66 times more return on investment than China BlueChemical. However, TOTAL ENERGY SERVS is 1.51 times less risky than China BlueChemical. It trades about 0.41 of its potential returns per unit of risk. China BlueChemical is currently generating about 0.02 per unit of risk. If you would invest 623.00 in TOTAL ENERGY SERVS on September 5, 2024 and sell it today you would earn a total of 150.00 from holding TOTAL ENERGY SERVS or generate 24.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TOTAL ENERGY SERVS vs. China BlueChemical
Performance |
| Timeline |
| TOTAL ENERGY SERVS |
| China BlueChemical |
TOTAL ENERGY and China BlueChemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TOTAL ENERGY and China BlueChemical
The main advantage of trading using opposite TOTAL ENERGY and China BlueChemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TOTAL ENERGY position performs unexpectedly, China BlueChemical 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 China BlueChemical will offset losses from the drop in China BlueChemical's long position.| TOTAL ENERGY vs. China BlueChemical | TOTAL ENERGY vs. Silicon Motion Technology | TOTAL ENERGY vs. Sekisui Chemical Co | TOTAL ENERGY vs. METHODE ELECTRONICS |
| China BlueChemical vs. FUYO GENERAL LEASE | China BlueChemical vs. Global Ship Lease | China BlueChemical vs. PLAYSTUDIOS A DL 0001 | China BlueChemical vs. Lendlease Group |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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