Correlation Between Total Energy and Shawcor
Can any of the company-specific risk be diversified away by investing in both Total Energy and Shawcor 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 Total Energy and Shawcor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Total Energy Services and Shawcor, you can compare the effects of market volatilities on Total Energy and Shawcor 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 Total Energy with a short position of Shawcor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Total Energy and Shawcor.
Diversification Opportunities for Total Energy and Shawcor
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Total and Shawcor is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Total Energy Services and Shawcor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shawcor and Total Energy 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 Total Energy Services are associated (or correlated) with Shawcor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shawcor has no effect on the direction of Total Energy i.e., Total Energy and Shawcor go up and down completely randomly.
Pair Corralation between Total Energy and Shawcor
If you would invest 696.00 in Total Energy Services on September 1, 2024 and sell it today you would earn a total of 143.00 from holding Total Energy Services or generate 20.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.76% |
| Values | Daily Returns |
Total Energy Services vs. Shawcor
Performance |
| Timeline |
| Total Energy Services |
| Shawcor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Total Energy and Shawcor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Total Energy and Shawcor
The main advantage of trading using opposite Total Energy and Shawcor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Total Energy position performs unexpectedly, Shawcor 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 Shawcor will offset losses from the drop in Shawcor's long position.| Total Energy vs. Source Energy Services | Total Energy vs. Trican Well Service | Total Energy vs. STEP Energy Services | Total Energy vs. Koil Energy Solutions |
| Shawcor vs. STEP Energy Services | Shawcor vs. Total Energy Services | Shawcor vs. Trican Well Service | Shawcor vs. High Arctic Energy |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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