Correlation Between Energy Transfer and Remy Cointreau

Can any of the company-specific risk be diversified away by investing in both Energy Transfer and Remy Cointreau 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 Energy Transfer and Remy Cointreau into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Energy Transfer LP and Remy Cointreau SA, you can compare the effects of market volatilities on Energy Transfer and Remy Cointreau 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 Energy Transfer with a short position of Remy Cointreau. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energy Transfer and Remy Cointreau.

Diversification Opportunities for Energy Transfer and Remy Cointreau

-0.45

Correlation Coefficient

Energy Transfer  Remy Cointreau

Very good diversification

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

Pair Corralation between Energy Transfer and Remy Cointreau

Allowing for the 90-day total investment horizon Energy Transfer LP is expected to generate 0.66 times more return on investment than Remy Cointreau. However, Energy Transfer LP is 1.52 times less risky than Remy Cointreau. It trades about 0.03 of its potential returns per unit of risk. Remy Cointreau SA is currently generating about -0.09 per unit of risk. If you would invest  1,868  in Energy Transfer LP on December 4, 2024 and sell it today you would earn a total of  35.00  from holding Energy Transfer LP or generate 1.87% return on investment over 90 days.

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

Energy Transfer LP  vs.  Remy Cointreau SA

Energy Transfer LP

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Energy Transfer LP are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Energy Transfer is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Remy Cointreau SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Remy Cointreau SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Energy Transfer and Remy Cointreau

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

The idea behind Energy Transfer LP and Remy Cointreau SA 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.