Correlation Between Lloyds Banking and TotalEnergies
Can any of the company-specific risk be diversified away by investing in both Lloyds Banking 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 Lloyds Banking and TotalEnergies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lloyds Banking Group and TotalEnergies SE, you can compare the effects of market volatilities on Lloyds Banking 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 Lloyds Banking with a short position of TotalEnergies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lloyds Banking and TotalEnergies.
Diversification Opportunities for Lloyds Banking and TotalEnergies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lloyds and TotalEnergies is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lloyds Banking Group and TotalEnergies SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TotalEnergies SE and Lloyds Banking 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 Lloyds Banking Group 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 Lloyds Banking i.e., Lloyds Banking and TotalEnergies go up and down completely randomly.
Pair Corralation between Lloyds Banking and TotalEnergies
If you would invest 128,400 in TotalEnergies SE on August 28, 2024 and sell it today you would earn a total of 0.00 from holding TotalEnergies SE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lloyds Banking Group vs. TotalEnergies SE
Performance |
| Timeline |
| Lloyds Banking Group |
| TotalEnergies SE |
Lloyds Banking and TotalEnergies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lloyds Banking and TotalEnergies
The main advantage of trading using opposite Lloyds Banking and TotalEnergies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lloyds Banking 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.| Lloyds Banking vs. Apple Inc | Lloyds Banking vs. Microsoft | Lloyds Banking vs. Alphabet Inc Class A | Lloyds Banking vs. Alphabet Inc |
| TotalEnergies vs. Monster Beverage Corp | TotalEnergies vs. Ross Stores | TotalEnergies vs. Grupo Hotelero Santa | TotalEnergies vs. Lloyds Banking Group |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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