Correlation Between TotalEnergies and Petrogress

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

By analyzing existing cross correlation between TotalEnergies SE ADR and Petrogress, you can compare the effects of market volatilities on TotalEnergies and Petrogress 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 with a short position of Petrogress. Check out your portfolio center. Please also check ongoing floating volatility patterns of TotalEnergies and Petrogress.

Diversification Opportunities for TotalEnergies and Petrogress

0.0

Correlation Coefficient

TotalEnergies  Petrogress

Pay attention - limited upside

The 3 months correlation between TotalEnergies and Petrogress is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TotalEnergies SE ADR and Petrogress in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petrogress and TotalEnergies 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 SE ADR are associated (or correlated) with Petrogress. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petrogress has no effect on the direction of TotalEnergies i.e., TotalEnergies and Petrogress go up and down completely randomly.

Pair Corralation between TotalEnergies and Petrogress

If you would invest  5,584  in TotalEnergies SE ADR on December 4, 2024 and sell it today you would earn a total of  403.00  from holding TotalEnergies SE ADR or generate 7.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	50.0%
Values	Daily Returns

TotalEnergies SE ADR  vs.  Petrogress

TotalEnergies SE ADR

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in TotalEnergies SE ADR are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, TotalEnergies may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Petrogress

Risk-Adjusted Performance

Very Weak

Over the last 90 days Petrogress has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Petrogress is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with TotalEnergies and Petrogress

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

The idea behind TotalEnergies SE ADR and Petrogress 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.