Correlation Between TechnipFMC PLC and Reliq Health
Can any of the company-specific risk be diversified away by investing in both TechnipFMC PLC and Reliq Health 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 TechnipFMC PLC and Reliq Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TechnipFMC PLC and Reliq Health Technologies, you can compare the effects of market volatilities on TechnipFMC PLC and Reliq Health 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 TechnipFMC PLC with a short position of Reliq Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of TechnipFMC PLC and Reliq Health.
Diversification Opportunities for TechnipFMC PLC and Reliq Health
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TechnipFMC and Reliq is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding TechnipFMC PLC and Reliq Health Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reliq Health Technologies and TechnipFMC PLC 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 TechnipFMC PLC are associated (or correlated) with Reliq Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reliq Health Technologies has no effect on the direction of TechnipFMC PLC i.e., TechnipFMC PLC and Reliq Health go up and down completely randomly.
Pair Corralation between TechnipFMC PLC and Reliq Health
Considering the 90-day investment horizon TechnipFMC PLC is expected to generate 49.8 times less return on investment than Reliq Health. But when comparing it to its historical volatility, TechnipFMC PLC is 63.89 times less risky than Reliq Health. It trades about 0.19 of its potential returns per unit of risk. Reliq Health Technologies is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 4.00 in Reliq Health Technologies on September 11, 2024 and sell it today you would lose (3.99) from holding Reliq Health Technologies or give up 99.75% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
TechnipFMC PLC vs. Reliq Health Technologies
Performance |
Timeline |
TechnipFMC PLC |
Reliq Health Technologies |
TechnipFMC PLC and Reliq Health Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TechnipFMC PLC and Reliq Health
The main advantage of trading using opposite TechnipFMC PLC and Reliq Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TechnipFMC PLC position performs unexpectedly, Reliq Health 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 Reliq Health will offset losses from the drop in Reliq Health's long position.TechnipFMC PLC vs. Schlumberger NV | TechnipFMC PLC vs. Weatherford International PLC | TechnipFMC PLC vs. Tenaris SA ADR | TechnipFMC PLC vs. Halliburton |
Reliq Health vs. Achiko AG | Reliq Health vs. NetraMark Holdings | Reliq Health vs. EGF Theramed Health | Reliq Health vs. Mitesco |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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