Correlation Between Exail Technologies and Technip Energies
Can any of the company-specific risk be diversified away by investing in both Exail Technologies and Technip Energies 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 Exail Technologies and Technip Energies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exail Technologies SA and Technip Energies BV, you can compare the effects of market volatilities on Exail Technologies and Technip Energies 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 Exail Technologies with a short position of Technip Energies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exail Technologies and Technip Energies.
Diversification Opportunities for Exail Technologies and Technip Energies
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Exail and Technip is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Exail Technologies SA and Technip Energies BV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Technip Energies and Exail Technologies 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 Exail Technologies SA are associated (or correlated) with Technip Energies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Technip Energies has no effect on the direction of Exail Technologies i.e., Exail Technologies and Technip Energies go up and down completely randomly.
Pair Corralation between Exail Technologies and Technip Energies
Assuming the 90 days trading horizon Exail Technologies is expected to generate 2.61 times less return on investment than Technip Energies. In addition to that, Exail Technologies is 1.1 times more volatile than Technip Energies BV. It trades about 0.01 of its total potential returns per unit of risk. Technip Energies BV is currently generating about 0.04 per unit of volatility. If you would invest 1,815 in Technip Energies BV on August 31, 2024 and sell it today you would earn a total of 479.00 from holding Technip Energies BV or generate 26.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exail Technologies SA vs. Technip Energies BV
Performance |
| Timeline |
| Exail Technologies |
| Technip Energies |
Exail Technologies and Technip Energies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exail Technologies and Technip Energies
The main advantage of trading using opposite Exail Technologies and Technip Energies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exail Technologies position performs unexpectedly, Technip Energies 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 Technip Energies will offset losses from the drop in Technip Energies' long position.| Exail Technologies vs. CMG Cleantech SA | Exail Technologies vs. Entech SE SAS | Exail Technologies vs. Reworld Media | Exail Technologies vs. Soditech SA |
| Technip Energies vs. Gaztransport Technigaz SAS | Technip Energies vs. TotalEnergies SE | Technip Energies vs. Neoen SA | Technip Energies vs. Rubis SCA |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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