Correlation Between TOTALENERGIES MARKETING and STERLING FINANCIAL
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By analyzing existing cross correlation between TOTALENERGIES MARKETING NIGERIA and STERLING FINANCIAL HOLDINGS, you can compare the effects of market volatilities on TOTALENERGIES MARKETING and STERLING FINANCIAL 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 TOTALENERGIES MARKETING with a short position of STERLING FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of TOTALENERGIES MARKETING and STERLING FINANCIAL.
Diversification Opportunities for TOTALENERGIES MARKETING and STERLING FINANCIAL
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TOTALENERGIES and STERLING is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding TOTALENERGIES MARKETING NIGERI and STERLING FINANCIAL HOLDINGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STERLING FINANCIAL and TOTALENERGIES MARKETING 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 TOTALENERGIES MARKETING NIGERIA are associated (or correlated) with STERLING FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STERLING FINANCIAL has no effect on the direction of TOTALENERGIES MARKETING i.e., TOTALENERGIES MARKETING and STERLING FINANCIAL go up and down completely randomly.
Pair Corralation between TOTALENERGIES MARKETING and STERLING FINANCIAL
Assuming the 90 days trading horizon TOTALENERGIES MARKETING NIGERIA is expected to generate 0.95 times more return on investment than STERLING FINANCIAL. However, TOTALENERGIES MARKETING NIGERIA is 1.05 times less risky than STERLING FINANCIAL. It trades about 0.0 of its potential returns per unit of risk. STERLING FINANCIAL HOLDINGS is currently generating about -0.02 per unit of risk. If you would invest 67,390 in TOTALENERGIES MARKETING NIGERIA on October 26, 2024 and sell it today you would lose (390.00) from holding TOTALENERGIES MARKETING NIGERIA or give up 0.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TOTALENERGIES MARKETING NIGERI vs. STERLING FINANCIAL HOLDINGS
Performance |
| Timeline |
| TOTALENERGIES MARKETING |
| STERLING FINANCIAL |
TOTALENERGIES MARKETING and STERLING FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TOTALENERGIES MARKETING and STERLING FINANCIAL
The main advantage of trading using opposite TOTALENERGIES MARKETING and STERLING FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TOTALENERGIES MARKETING position performs unexpectedly, STERLING FINANCIAL 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 STERLING FINANCIAL will offset losses from the drop in STERLING FINANCIAL's long position.| TOTALENERGIES MARKETING vs. GUINEA INSURANCE PLC | TOTALENERGIES MARKETING vs. SECURE ELECTRONIC TECHNOLOGY | TOTALENERGIES MARKETING vs. VETIVA BANKING ETF | TOTALENERGIES MARKETING vs. BUA FOODS PLC |
| STERLING FINANCIAL vs. TOTALENERGIES MARKETING NIGERIA | STERLING FINANCIAL vs. AFRICAN ALLIANCE INSURANCE | STERLING FINANCIAL vs. WEMA BANK PLC | STERLING FINANCIAL vs. CONSOLIDATED HALLMARK INSURANCE |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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