Correlation Between TOTALENERGIES MARKETING and C I

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

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

Diversification Opportunities for TOTALENERGIES MARKETING and C I

-0.45

Correlation Coefficient

TOTALENERGIES MARKETING  C I

Very good diversification

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

Pair Corralation between TOTALENERGIES MARKETING and C I

Assuming the 90 days trading horizon TOTALENERGIES MARKETING is expected to generate 184.77 times less return on investment than C I. But when comparing it to its historical volatility, TOTALENERGIES MARKETING NIGERIA is 2.01 times less risky than C I. It trades about 0.0 of its potential returns per unit of risk. C I LEASING is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  385.00  in C I LEASING on October 23, 2024 and sell it today you would earn a total of  55.00  from holding C I LEASING or generate 14.29% return on investment over 90 days.

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

TOTALENERGIES MARKETING NIGERI  vs.  C I LEASING

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.

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 weak basic indicators, C I demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TOTALENERGIES MARKETING and C I

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

The idea behind TOTALENERGIES MARKETING NIGERIA and C I LEASING 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.