Correlation Between DEAP CAPITAL and TOTALENERGIES MARKETING

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

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

Diversification Opportunities for DEAP CAPITAL and TOTALENERGIES MARKETING

-0.24

Correlation Coefficient

DEAP CAPITAL  TOTALENERGIES MARKETING

Very good diversification

The 3 months correlation between DEAP and TOTALENERGIES is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding DEAP CAPITAL MANAGEMENT and TOTALENERGIES MARKETING NIGERI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOTALENERGIES MARKETING and DEAP CAPITAL 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 DEAP CAPITAL MANAGEMENT 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 DEAP CAPITAL i.e., DEAP CAPITAL and TOTALENERGIES MARKETING go up and down completely randomly.

Pair Corralation between DEAP CAPITAL and TOTALENERGIES MARKETING

Assuming the 90 days trading horizon DEAP CAPITAL MANAGEMENT is expected to generate 3.5 times more return on investment than TOTALENERGIES MARKETING. However, DEAP CAPITAL is 3.5 times more volatile than TOTALENERGIES MARKETING NIGERIA. It trades about 0.0 of its potential returns per unit of risk. TOTALENERGIES MARKETING NIGERIA is currently generating about -0.08 per unit of risk. If you would invest  136.00  in DEAP CAPITAL MANAGEMENT on October 11, 2024 and sell it today you would lose (10.00) from holding DEAP CAPITAL MANAGEMENT or give up 7.35% of portfolio value over 90 days.

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

DEAP CAPITAL MANAGEMENT  vs.  TOTALENERGIES MARKETING NIGERI

DEAP CAPITAL MANAGEMENT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days DEAP CAPITAL MANAGEMENT has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, DEAP CAPITAL is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

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 latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with DEAP CAPITAL and TOTALENERGIES MARKETING

The main advantage of trading using opposite DEAP CAPITAL and TOTALENERGIES MARKETING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DEAP CAPITAL 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 DEAP CAPITAL MANAGEMENT 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.

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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.