Correlation Between TechnipFMC PLC and Towngas China
Can any of the company-specific risk be diversified away by investing in both TechnipFMC PLC and Towngas China 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 Towngas China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TechnipFMC PLC and Towngas China, you can compare the effects of market volatilities on TechnipFMC PLC and Towngas China 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 Towngas China. Check out your portfolio center. Please also check ongoing floating volatility patterns of TechnipFMC PLC and Towngas China.
Diversification Opportunities for TechnipFMC PLC and Towngas China
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TechnipFMC and Towngas is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TechnipFMC PLC and Towngas China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Towngas China 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 Towngas China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Towngas China has no effect on the direction of TechnipFMC PLC i.e., TechnipFMC PLC and Towngas China go up and down completely randomly.
Pair Corralation between TechnipFMC PLC and Towngas China
If you would invest 2,634 in TechnipFMC PLC on September 4, 2024 and sell it today you would earn a total of 497.00 from holding TechnipFMC PLC or generate 18.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TechnipFMC PLC vs. Towngas China
Performance |
| Timeline |
| TechnipFMC PLC |
| Towngas China |
TechnipFMC PLC and Towngas China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TechnipFMC PLC and Towngas China
The main advantage of trading using opposite TechnipFMC PLC and Towngas China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TechnipFMC PLC position performs unexpectedly, Towngas China 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 Towngas China will offset losses from the drop in Towngas China's long position.| TechnipFMC PLC vs. Geospace Technologies | TechnipFMC PLC vs. Weatherford International PLC | TechnipFMC PLC vs. Enerflex | TechnipFMC PLC vs. RPC Inc |
| Towngas China vs. UGI Corporation | Towngas China vs. NewJersey Resources | Towngas China vs. Chesapeake Utilities | Towngas China vs. NiSource |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |