Correlation Between Budapest and Total SA
Can any of the company-specific risk be diversified away by investing in both Budapest and Total 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 Budapest and Total SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Budapest SE and Total SA, you can compare the effects of market volatilities on Budapest and Total 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 Budapest with a short position of Total SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Budapest and Total SA.
Diversification Opportunities for Budapest and Total SA
Pay attention - limited upside
The 3 months correlation between Budapest and Total is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Budapest SE and Total SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Total SA and Budapest 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 Budapest SE are associated (or correlated) with Total SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total SA has no effect on the direction of Budapest i.e., Budapest and Total SA go up and down completely randomly.
Pair Corralation between Budapest and Total SA
If you would invest 4,593,646 in Budapest SE on September 1, 2024 and sell it today you would earn a total of 3,199,975 from holding Budapest SE or generate 69.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Budapest SE vs. Total SA
Performance |
| Timeline |
Budapest and Total SA Volatility Contrast
Predicted Return Density |
| Returns |
Total SA
Pair trading matchups for Total SA
Pair Trading with Budapest and Total SA
The main advantage of trading using opposite Budapest and Total SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Budapest position performs unexpectedly, Total 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 Total SA will offset losses from the drop in Total SA's long position.The idea behind Budapest SE and Total SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Total SA vs. OPUS GLOBAL Nyrt | Total SA vs. OTP Bank Nyrt | Total SA vs. Infineon Technologies AG | Total SA vs. Appeninn Nyrt |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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