Correlation Between Trican Well and Total Energy
Can any of the company-specific risk be diversified away by investing in both Trican Well and Total Energy 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 Trican Well and Total Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trican Well Service and Total Energy Services, you can compare the effects of market volatilities on Trican Well and Total Energy 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 Trican Well with a short position of Total Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trican Well and Total Energy.
Diversification Opportunities for Trican Well and Total Energy
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Trican and Total is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Trican Well Service and Total Energy Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Total Energy Services and Trican Well 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 Trican Well Service are associated (or correlated) with Total Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total Energy Services has no effect on the direction of Trican Well i.e., Trican Well and Total Energy go up and down completely randomly.
Pair Corralation between Trican Well and Total Energy
Assuming the 90 days horizon Trican Well Service is expected to generate 0.87 times more return on investment than Total Energy. However, Trican Well Service is 1.15 times less risky than Total Energy. It trades about 0.06 of its potential returns per unit of risk. Total Energy Services is currently generating about 0.05 per unit of risk. If you would invest 232.00 in Trican Well Service on September 1, 2024 and sell it today you would earn a total of 115.00 from holding Trican Well Service or generate 49.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 92.47% |
| Values | Daily Returns |
Trican Well Service vs. Total Energy Services
Performance |
| Timeline |
| Trican Well Service |
| Total Energy Services |
Trican Well and Total Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trican Well and Total Energy
The main advantage of trading using opposite Trican Well and Total Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trican Well position performs unexpectedly, Total Energy 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 Total Energy will offset losses from the drop in Total Energy's long position.| Trican Well vs. Petroleo Brasileiro Petrobras | Trican Well vs. Equinor ASA ADR | Trican Well vs. Eni SpA ADR | Trican Well vs. YPF Sociedad Anonima |
| Total Energy vs. Source Energy Services | Total Energy vs. Trican Well Service | Total Energy vs. STEP Energy Services | Total Energy vs. Koil Energy Solutions |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |