Correlation Between TotalEnergies and Neotion SA
Can any of the company-specific risk be diversified away by investing in both TotalEnergies and Neotion SA 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 TotalEnergies and Neotion SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TotalEnergies SE and Neotion SA, you can compare the effects of market volatilities on TotalEnergies and Neotion SA 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 with a short position of Neotion SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of TotalEnergies and Neotion SA.
Diversification Opportunities for TotalEnergies and Neotion SA
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TotalEnergies and Neotion is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding TotalEnergies SE and Neotion SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neotion SA and TotalEnergies 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 SE are associated (or correlated) with Neotion SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neotion SA has no effect on the direction of TotalEnergies i.e., TotalEnergies and Neotion SA go up and down completely randomly.
Pair Corralation between TotalEnergies and Neotion SA
If you would invest 50.00 in Neotion SA on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Neotion SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
TotalEnergies SE vs. Neotion SA
Performance |
| Timeline |
| TotalEnergies SE |
| Neotion SA |
TotalEnergies and Neotion SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TotalEnergies and Neotion SA
The main advantage of trading using opposite TotalEnergies and Neotion SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TotalEnergies position performs unexpectedly, Neotion SA 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 Neotion SA will offset losses from the drop in Neotion SA's long position.| TotalEnergies vs. Air Liquide SA | TotalEnergies vs. Engie SA | TotalEnergies vs. Sanofi SA | TotalEnergies vs. AXA SA |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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