Correlation Between Rubis SCA and TotalEnergies
Can any of the company-specific risk be diversified away by investing in both Rubis SCA 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 Rubis SCA and TotalEnergies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rubis SCA and TotalEnergies SE, you can compare the effects of market volatilities on Rubis SCA 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 Rubis SCA with a short position of TotalEnergies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rubis SCA and TotalEnergies.
Diversification Opportunities for Rubis SCA and TotalEnergies
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Rubis and TotalEnergies is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Rubis SCA and TotalEnergies SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TotalEnergies SE and Rubis SCA 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 Rubis SCA 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 Rubis SCA i.e., Rubis SCA and TotalEnergies go up and down completely randomly.
Pair Corralation between Rubis SCA and TotalEnergies
Assuming the 90 days trading horizon Rubis SCA is expected to generate 2.28 times more return on investment than TotalEnergies. However, Rubis SCA is 2.28 times more volatile than TotalEnergies SE. It trades about -0.11 of its potential returns per unit of risk. TotalEnergies SE is currently generating about -0.32 per unit of risk. If you would invest 2,428 in Rubis SCA on August 30, 2024 and sell it today you would lose (178.00) from holding Rubis SCA or give up 7.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Rubis SCA vs. TotalEnergies SE
Performance |
| Timeline |
| Rubis SCA |
| TotalEnergies SE |
Rubis SCA and TotalEnergies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rubis SCA and TotalEnergies
The main advantage of trading using opposite Rubis SCA and TotalEnergies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rubis SCA 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.| Rubis SCA vs. Gaztransport Technigaz SAS | Rubis SCA vs. Nexity | Rubis SCA vs. SCOR SE | Rubis SCA vs. TotalEnergies SE |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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