Correlation Between TotalEnergies and Financiere Marjos
Can any of the company-specific risk be diversified away by investing in both TotalEnergies and Financiere Marjos 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 Financiere Marjos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TotalEnergies SE and Financiere Marjos SA, you can compare the effects of market volatilities on TotalEnergies and Financiere Marjos 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 Financiere Marjos. Check out your portfolio center. Please also check ongoing floating volatility patterns of TotalEnergies and Financiere Marjos.
Diversification Opportunities for TotalEnergies and Financiere Marjos
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TotalEnergies and Financiere is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding TotalEnergies SE and Financiere Marjos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Financiere Marjos 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 Financiere Marjos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Financiere Marjos has no effect on the direction of TotalEnergies i.e., TotalEnergies and Financiere Marjos go up and down completely randomly.
Pair Corralation between TotalEnergies and Financiere Marjos
Assuming the 90 days trading horizon TotalEnergies SE is expected to under-perform the Financiere Marjos. But the stock apears to be less risky and, when comparing its historical volatility, TotalEnergies SE is 4.98 times less risky than Financiere Marjos. The stock trades about -0.08 of its potential returns per unit of risk. The Financiere Marjos SA is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 7.80 in Financiere Marjos SA on September 2, 2024 and sell it today you would earn a total of 2.20 from holding Financiere Marjos SA or generate 28.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TotalEnergies SE vs. Financiere Marjos SA
Performance |
| Timeline |
| TotalEnergies SE |
| Financiere Marjos |
TotalEnergies and Financiere Marjos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TotalEnergies and Financiere Marjos
The main advantage of trading using opposite TotalEnergies and Financiere Marjos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TotalEnergies position performs unexpectedly, Financiere Marjos 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 Financiere Marjos will offset losses from the drop in Financiere Marjos' long position.| TotalEnergies vs. Air Liquide SA | TotalEnergies vs. Engie SA | TotalEnergies vs. Sanofi SA | TotalEnergies vs. AXA SA |
| Financiere Marjos vs. Vente Unique | Financiere Marjos vs. Groupe Sfpi | Financiere Marjos vs. Cegedim SA | Financiere Marjos vs. SA Catana Group |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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