Correlation Between TotalEnergies and Crescent Energy
Can any of the company-specific risk be diversified away by investing in both TotalEnergies and Crescent Energy 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 Crescent Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TotalEnergies SE ADR and Crescent Energy Co, you can compare the effects of market volatilities on TotalEnergies and Crescent Energy 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 Crescent Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of TotalEnergies and Crescent Energy.
Diversification Opportunities for TotalEnergies and Crescent Energy
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TotalEnergies and Crescent is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding TotalEnergies SE ADR and Crescent Energy Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crescent Energy 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 ADR are associated (or correlated) with Crescent Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crescent Energy has no effect on the direction of TotalEnergies i.e., TotalEnergies and Crescent Energy go up and down completely randomly.
Pair Corralation between TotalEnergies and Crescent Energy
Considering the 90-day investment horizon TotalEnergies is expected to generate 19.34 times less return on investment than Crescent Energy. But when comparing it to its historical volatility, TotalEnergies SE ADR is 1.97 times less risky than Crescent Energy. It trades about 0.0 of its potential returns per unit of risk. Crescent Energy Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,152 in Crescent Energy Co on September 14, 2024 and sell it today you would earn a total of 324.00 from holding Crescent Energy Co or generate 28.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
TotalEnergies SE ADR vs. Crescent Energy Co
Performance |
| Timeline |
| TotalEnergies SE ADR |
| Crescent Energy |
TotalEnergies and Crescent Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TotalEnergies and Crescent Energy
The main advantage of trading using opposite TotalEnergies and Crescent Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TotalEnergies position performs unexpectedly, Crescent Energy 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 Crescent Energy will offset losses from the drop in Crescent Energy's long position.| TotalEnergies vs. Aquagold International | TotalEnergies vs. Thrivent High Yield | TotalEnergies vs. Morningstar Unconstrained Allocation | TotalEnergies vs. Via Renewables |
| Crescent Energy vs. Exxon Mobil Corp | Crescent Energy vs. Chevron Corp | Crescent Energy vs. TotalEnergies SE ADR | Crescent Energy vs. Petroleo Brasileiro Petrobras |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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