Correlation Between TotalEnergies and Origin Energy
Can any of the company-specific risk be diversified away by investing in both TotalEnergies and Origin 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 Origin 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 Origin Energy Ltd, you can compare the effects of market volatilities on TotalEnergies and Origin 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 Origin Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of TotalEnergies and Origin Energy.
Diversification Opportunities for TotalEnergies and Origin Energy
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TotalEnergies and Origin is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding TotalEnergies SE ADR and Origin Energy Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin 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 Origin Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Origin Energy has no effect on the direction of TotalEnergies i.e., TotalEnergies and Origin Energy go up and down completely randomly.
Pair Corralation between TotalEnergies and Origin Energy
Considering the 90-day investment horizon TotalEnergies SE ADR is expected to under-perform the Origin Energy. But the stock apears to be less risky and, when comparing its historical volatility, TotalEnergies SE ADR is 1.62 times less risky than Origin Energy. The stock trades about -0.03 of its potential returns per unit of risk. The Origin Energy Ltd is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 660.00 in Origin Energy Ltd on December 10, 2024 and sell it today you would earn a total of 0.00 from holding Origin Energy Ltd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TotalEnergies SE ADR vs. Origin Energy Ltd
Performance |
| Timeline |
| TotalEnergies SE ADR |
| Origin Energy |
TotalEnergies and Origin Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TotalEnergies and Origin Energy
The main advantage of trading using opposite TotalEnergies and Origin Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TotalEnergies position performs unexpectedly, Origin 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 Origin Energy will offset losses from the drop in Origin Energy's long position.| TotalEnergies vs. BP PLC ADR | ||
| TotalEnergies vs. Chevron Corp | ||
| TotalEnergies vs. Exxon Mobil Corp | ||
| TotalEnergies vs. Equinor ASA ADR |
| Origin Energy vs. BP plc | ||
| Origin Energy vs. China Petroleum Chemical | ||
| Origin Energy vs. TotalEnergies SE | ||
| Origin Energy vs. Shell PLC |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |