Correlation Between TechnipFMC PLC and PHLX Swiss
Can any of the company-specific risk be diversified away by investing in both TechnipFMC PLC and PHLX Swiss 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 PHLX Swiss into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TechnipFMC PLC and PHLX Swiss Franc, you can compare the effects of market volatilities on TechnipFMC PLC and PHLX Swiss 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 PHLX Swiss. Check out your portfolio center. Please also check ongoing floating volatility patterns of TechnipFMC PLC and PHLX Swiss.
Diversification Opportunities for TechnipFMC PLC and PHLX Swiss
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TechnipFMC and PHLX is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding TechnipFMC PLC and PHLX Swiss Franc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHLX Swiss Franc 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 PHLX Swiss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHLX Swiss Franc has no effect on the direction of TechnipFMC PLC i.e., TechnipFMC PLC and PHLX Swiss go up and down completely randomly.
Pair Corralation between TechnipFMC PLC and PHLX Swiss
Considering the 90-day investment horizon TechnipFMC PLC is expected to under-perform the PHLX Swiss. In addition to that, TechnipFMC PLC is 4.92 times more volatile than PHLX Swiss Franc. It trades about -0.07 of its total potential returns per unit of risk. PHLX Swiss Franc is currently generating about 0.29 per unit of volatility. If you would invest 11,074 in PHLX Swiss Franc on January 14, 2025 and sell it today you would earn a total of 1,211 from holding PHLX Swiss Franc or generate 10.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
TechnipFMC PLC vs. PHLX Swiss Franc
Performance |
| Timeline |
TechnipFMC PLC and PHLX Swiss Volatility Contrast
Predicted Return Density |
| Returns |
TechnipFMC PLC
Pair trading matchups for TechnipFMC PLC
PHLX Swiss Franc
Pair trading matchups for PHLX Swiss
Pair Trading with TechnipFMC PLC and PHLX Swiss
The main advantage of trading using opposite TechnipFMC PLC and PHLX Swiss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TechnipFMC PLC position performs unexpectedly, PHLX Swiss 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 PHLX Swiss will offset losses from the drop in PHLX Swiss' long position.| TechnipFMC PLC vs. Oceaneering International | TechnipFMC PLC vs. NOV Inc | TechnipFMC PLC vs. Flowserve | TechnipFMC PLC vs. Core Laboratories NV |
| PHLX Swiss vs. Procter Gamble | PHLX Swiss vs. Shelf Drilling | PHLX Swiss vs. Webus International Limited | PHLX Swiss vs. Noble plc |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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