Correlation Between TechnipFMC PLC and Argentum
Can any of the company-specific risk be diversified away by investing in both TechnipFMC PLC and Argentum 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 Argentum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TechnipFMC PLC and Argentum 47, you can compare the effects of market volatilities on TechnipFMC PLC and Argentum 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 Argentum. Check out your portfolio center. Please also check ongoing floating volatility patterns of TechnipFMC PLC and Argentum.
Diversification Opportunities for TechnipFMC PLC and Argentum
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TechnipFMC and Argentum is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding TechnipFMC PLC and Argentum 47 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argentum 47 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 Argentum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argentum 47 has no effect on the direction of TechnipFMC PLC i.e., TechnipFMC PLC and Argentum go up and down completely randomly.
Pair Corralation between TechnipFMC PLC and Argentum
Considering the 90-day investment horizon TechnipFMC PLC is expected to generate 0.16 times more return on investment than Argentum. However, TechnipFMC PLC is 6.23 times less risky than Argentum. It trades about 0.49 of its potential returns per unit of risk. Argentum 47 is currently generating about -0.17 per unit of risk. If you would invest 2,634 in TechnipFMC PLC on September 3, 2024 and sell it today you would earn a total of 503.00 from holding TechnipFMC PLC or generate 19.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TechnipFMC PLC vs. Argentum 47
Performance |
| Timeline |
| TechnipFMC PLC |
| Argentum 47 |
TechnipFMC PLC and Argentum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TechnipFMC PLC and Argentum
The main advantage of trading using opposite TechnipFMC PLC and Argentum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TechnipFMC PLC position performs unexpectedly, Argentum 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 Argentum will offset losses from the drop in Argentum's long position.| TechnipFMC PLC vs. Oceaneering International | TechnipFMC PLC vs. NOV Inc | TechnipFMC PLC vs. Flowserve | TechnipFMC PLC vs. Core Laboratories NV |
| Argentum vs. Marsh McLennan Companies | Argentum vs. Arthur J Gallagher | Argentum vs. Willis Towers Watson | Argentum vs. Brown Brown |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |