Correlation Between Technip Energies and Impulse Fitness

Can any of the company-specific risk be diversified away by investing in both Technip Energies and Impulse Fitness 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 Technip Energies and Impulse Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Technip Energies BV and Impulse Fitness Solutions, you can compare the effects of market volatilities on Technip Energies and Impulse Fitness 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 Technip Energies with a short position of Impulse Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Technip Energies and Impulse Fitness.

Diversification Opportunities for Technip Energies and Impulse Fitness

-0.55

Correlation Coefficient

Technip Energies  Impulse Fitness

Excellent diversification

The 3 months correlation between Technip and Impulse is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Technip Energies BV and Impulse Fitness Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impulse Fitness Solutions and Technip Energies 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 Technip Energies BV are associated (or correlated) with Impulse Fitness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impulse Fitness Solutions has no effect on the direction of Technip Energies i.e., Technip Energies and Impulse Fitness go up and down completely randomly.

Pair Corralation between Technip Energies and Impulse Fitness

If you would invest  2,330  in Technip Energies BV on December 2, 2024 and sell it today you would earn a total of  664.00  from holding Technip Energies BV or generate 28.5% return on investment over 90 days.

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

Technip Energies BV  vs.  Impulse Fitness Solutions

Technip Energies

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Technip Energies BV are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Technip Energies sustained solid returns over the last few months and may actually be approaching a breakup point.

Impulse Fitness Solutions

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Technip Energies and Impulse Fitness

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

The idea behind Technip Energies BV and Impulse Fitness Solutions 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.