Correlation Between C I and TOTALENERGIES MARKETING

Can any of the company-specific risk be diversified away by investing in both C I and TOTALENERGIES MARKETING 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 C I and TOTALENERGIES MARKETING into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between C I LEASING and TOTALENERGIES MARKETING NIGERIA, you can compare the effects of market volatilities on C I and TOTALENERGIES MARKETING 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 C I with a short position of TOTALENERGIES MARKETING. Check out your portfolio center. Please also check ongoing floating volatility patterns of C I and TOTALENERGIES MARKETING.

Diversification Opportunities for C I and TOTALENERGIES MARKETING

-0.45

Correlation Coefficient

C I  TOTALENERGIES MARKETING

Very good diversification

The 3 months correlation between CILEASING and TOTALENERGIES is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding C I LEASING and TOTALENERGIES MARKETING NIGERI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOTALENERGIES MARKETING and C I 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 C I LEASING are associated (or correlated) with TOTALENERGIES MARKETING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOTALENERGIES MARKETING has no effect on the direction of C I i.e., C I and TOTALENERGIES MARKETING go up and down completely randomly.

Pair Corralation between C I and TOTALENERGIES MARKETING

Assuming the 90 days trading horizon C I LEASING is expected to generate 2.78 times more return on investment than TOTALENERGIES MARKETING. However, C I is 2.78 times more volatile than TOTALENERGIES MARKETING NIGERIA. It trades about 0.09 of its potential returns per unit of risk. TOTALENERGIES MARKETING NIGERIA is currently generating about 0.0 per unit of risk. If you would invest  370.00  in C I LEASING on October 23, 2024 and sell it today you would earn a total of  70.00  from holding C I LEASING or generate 18.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

C I LEASING  vs.  TOTALENERGIES MARKETING NIGERI

C I LEASING

Risk-Adjusted Performance

7 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in C I LEASING are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, C I demonstrated solid returns over the last few months and may actually be approaching a breakup point.

TOTALENERGIES MARKETING

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TOTALENERGIES MARKETING NIGERIA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, TOTALENERGIES MARKETING is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with C I and TOTALENERGIES MARKETING

The main advantage of trading using opposite C I and TOTALENERGIES MARKETING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if C I position performs unexpectedly, TOTALENERGIES MARKETING 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 TOTALENERGIES MARKETING will offset losses from the drop in TOTALENERGIES MARKETING's long position.

The idea behind C I LEASING and TOTALENERGIES MARKETING NIGERIA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.