Correlation Between MOL PLC and TotalEnergies
Can any of the company-specific risk be diversified away by investing in both MOL PLC 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 MOL PLC and TotalEnergies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOL PLC ADR and TotalEnergies SE, you can compare the effects of market volatilities on MOL PLC 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 MOL PLC with a short position of TotalEnergies. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOL PLC and TotalEnergies.
Diversification Opportunities for MOL PLC and TotalEnergies
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MOL and TotalEnergies is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding MOL PLC ADR and TotalEnergies SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TotalEnergies SE and MOL 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 MOL PLC ADR 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 MOL PLC i.e., MOL PLC and TotalEnergies go up and down completely randomly.
Pair Corralation between MOL PLC and TotalEnergies
If you would invest 6,174 in TotalEnergies SE on August 27, 2024 and sell it today you would lose (180.00) from holding TotalEnergies SE or give up 2.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOL PLC ADR vs. TotalEnergies SE
Performance |
| Timeline |
| MOL PLC ADR |
| TotalEnergies SE |
MOL PLC and TotalEnergies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOL PLC and TotalEnergies
The main advantage of trading using opposite MOL PLC and TotalEnergies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOL PLC 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.| MOL PLC vs. Equinor ASA ADR | MOL PLC vs. TotalEnergies SE ADR | MOL PLC vs. Ecopetrol SA ADR | MOL PLC vs. National Fuel Gas |
| TotalEnergies vs. Equinor ASA ADR | TotalEnergies vs. TotalEnergies SE ADR | TotalEnergies vs. Ecopetrol SA ADR | TotalEnergies vs. National Fuel Gas |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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