Correlation Between TotalEnergies and Poulaillon
Can any of the company-specific risk be diversified away by investing in both TotalEnergies and Poulaillon 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 Poulaillon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TotalEnergies SE and Poulaillon SA, you can compare the effects of market volatilities on TotalEnergies and Poulaillon 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 Poulaillon. Check out your portfolio center. Please also check ongoing floating volatility patterns of TotalEnergies and Poulaillon.
Diversification Opportunities for TotalEnergies and Poulaillon
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TotalEnergies and Poulaillon is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding TotalEnergies SE and Poulaillon SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poulaillon 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 Poulaillon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poulaillon SA has no effect on the direction of TotalEnergies i.e., TotalEnergies and Poulaillon go up and down completely randomly.
Pair Corralation between TotalEnergies and Poulaillon
Assuming the 90 days trading horizon TotalEnergies SE is expected to under-perform the Poulaillon. But the stock apears to be less risky and, when comparing its historical volatility, TotalEnergies SE is 1.73 times less risky than Poulaillon. The stock trades about -0.01 of its potential returns per unit of risk. The Poulaillon SA is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 449.00 in Poulaillon SA on August 26, 2024 and sell it today you would earn a total of 106.00 from holding Poulaillon SA or generate 23.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.45% |
| Values | Daily Returns |
TotalEnergies SE vs. Poulaillon SA
Performance |
| Timeline |
| TotalEnergies SE |
| Poulaillon SA |
TotalEnergies and Poulaillon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TotalEnergies and Poulaillon
The main advantage of trading using opposite TotalEnergies and Poulaillon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TotalEnergies position performs unexpectedly, Poulaillon 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 Poulaillon will offset losses from the drop in Poulaillon's long position.| TotalEnergies vs. Air Liquide SA | TotalEnergies vs. Engie SA | TotalEnergies vs. Sanofi SA | TotalEnergies vs. AXA SA |
| Poulaillon vs. Piscines Desjoyaux SA | Poulaillon vs. Lectra SA | Poulaillon vs. Cogra 48 Socit | Poulaillon vs. Moulinvest |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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