Correlation Between Gaztransport Technigaz and TotalEnergies
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and TotalEnergies 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 Gaztransport Technigaz and TotalEnergies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaztransport Technigaz SAS and TotalEnergies SE, you can compare the effects of market volatilities on Gaztransport Technigaz and TotalEnergies 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 Gaztransport Technigaz with a short position of TotalEnergies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and TotalEnergies.
Diversification Opportunities for Gaztransport Technigaz and TotalEnergies
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gaztransport and TotalEnergies is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SAS and TotalEnergies SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TotalEnergies SE and Gaztransport Technigaz 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 Gaztransport Technigaz SAS are associated (or correlated) with TotalEnergies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TotalEnergies SE has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and TotalEnergies go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and TotalEnergies
Assuming the 90 days trading horizon Gaztransport Technigaz SAS is expected to generate 0.85 times more return on investment than TotalEnergies. However, Gaztransport Technigaz SAS is 1.18 times less risky than TotalEnergies. It trades about 0.07 of its potential returns per unit of risk. TotalEnergies SE is currently generating about -0.32 per unit of risk. If you would invest 13,730 in Gaztransport Technigaz SAS on August 30, 2024 and sell it today you would earn a total of 220.00 from holding Gaztransport Technigaz SAS or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport Technigaz SAS vs. TotalEnergies SE
Performance |
| Timeline |
| Gaztransport Technigaz |
| TotalEnergies SE |
Gaztransport Technigaz and TotalEnergies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and TotalEnergies
The main advantage of trading using opposite Gaztransport Technigaz and TotalEnergies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, TotalEnergies 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 TotalEnergies will offset losses from the drop in TotalEnergies' long position.| Gaztransport Technigaz vs. Rubis SCA | Gaztransport Technigaz vs. Teleperformance SE | Gaztransport Technigaz vs. Sartorius Stedim Biotech | Gaztransport Technigaz vs. Nexity |
| TotalEnergies vs. Air Liquide SA | TotalEnergies vs. Engie SA | TotalEnergies vs. Sanofi SA | TotalEnergies vs. AXA SA |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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