Correlation Between TotalEnergies and Stabilis Solutions
Can any of the company-specific risk be diversified away by investing in both TotalEnergies and Stabilis Solutions 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 Stabilis Solutions 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 Stabilis Solutions, you can compare the effects of market volatilities on TotalEnergies and Stabilis Solutions 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 Stabilis Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of TotalEnergies and Stabilis Solutions.
Diversification Opportunities for TotalEnergies and Stabilis Solutions
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TotalEnergies and Stabilis is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding TotalEnergies SE ADR and Stabilis Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stabilis Solutions 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 Stabilis Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stabilis Solutions has no effect on the direction of TotalEnergies i.e., TotalEnergies and Stabilis Solutions go up and down completely randomly.
Pair Corralation between TotalEnergies and Stabilis Solutions
Considering the 90-day investment horizon TotalEnergies SE ADR is expected to generate 0.38 times more return on investment than Stabilis Solutions. However, TotalEnergies SE ADR is 2.65 times less risky than Stabilis Solutions. It trades about 0.02 of its potential returns per unit of risk. Stabilis Solutions is currently generating about 0.0 per unit of risk. If you would invest 5,407 in TotalEnergies SE ADR on August 24, 2024 and sell it today you would earn a total of 596.00 from holding TotalEnergies SE ADR or generate 11.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TotalEnergies SE ADR vs. Stabilis Solutions
Performance |
| Timeline |
| TotalEnergies SE ADR |
| Stabilis Solutions |
TotalEnergies and Stabilis Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TotalEnergies and Stabilis Solutions
The main advantage of trading using opposite TotalEnergies and Stabilis Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TotalEnergies position performs unexpectedly, Stabilis Solutions 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 Stabilis Solutions will offset losses from the drop in Stabilis Solutions' long position.| TotalEnergies vs. Chevron Corp | TotalEnergies vs. Small Cap Core | TotalEnergies vs. Freedom Holding Corp | TotalEnergies vs. Gfl Environmental Holdings |
| Stabilis Solutions vs. Equinor ASA ADR | Stabilis Solutions vs. TotalEnergies SE ADR | Stabilis Solutions vs. Ecopetrol SA ADR | Stabilis Solutions vs. National Fuel Gas |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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