Correlation Between Technip Energies and Rubis SCA
Can any of the company-specific risk be diversified away by investing in both Technip Energies and Rubis SCA 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 Technip Energies and Rubis SCA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Technip Energies BV and Rubis SCA, you can compare the effects of market volatilities on Technip Energies and Rubis SCA 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 Technip Energies with a short position of Rubis SCA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Technip Energies and Rubis SCA.
Diversification Opportunities for Technip Energies and Rubis SCA
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Technip and Rubis is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Technip Energies BV and Rubis SCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rubis SCA and Technip Energies 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 Technip Energies BV are associated (or correlated) with Rubis SCA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rubis SCA has no effect on the direction of Technip Energies i.e., Technip Energies and Rubis SCA go up and down completely randomly.
Pair Corralation between Technip Energies and Rubis SCA
Assuming the 90 days horizon Technip Energies BV is expected to generate 1.02 times more return on investment than Rubis SCA. However, Technip Energies is 1.02 times more volatile than Rubis SCA. It trades about 0.02 of its potential returns per unit of risk. Rubis SCA is currently generating about -0.08 per unit of risk. If you would invest 2,274 in Technip Energies BV on September 1, 2024 and sell it today you would earn a total of 52.00 from holding Technip Energies BV or generate 2.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Technip Energies BV vs. Rubis SCA
Performance |
| Timeline |
| Technip Energies |
| Rubis SCA |
Technip Energies and Rubis SCA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Technip Energies and Rubis SCA
The main advantage of trading using opposite Technip Energies and Rubis SCA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Technip Energies position performs unexpectedly, Rubis SCA 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 Rubis SCA will offset losses from the drop in Rubis SCA's long position.| Technip Energies vs. Gaztransport Technigaz SAS | Technip Energies vs. TotalEnergies SE | Technip Energies vs. Neoen SA | Technip Energies vs. Rubis SCA |
| Rubis SCA vs. Gaztransport Technigaz SAS | Rubis SCA vs. Nexity | Rubis SCA vs. SCOR SE | Rubis SCA vs. TotalEnergies SE |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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