Correlation Between TotalEnergies and Onlineformapro

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

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

Diversification Opportunities for TotalEnergies and Onlineformapro

-0.55

Correlation Coefficient

TotalEnergies  Onlineformapro

Excellent diversification

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

Pair Corralation between TotalEnergies and Onlineformapro

Assuming the 90 days trading horizon TotalEnergies SE is expected to under-perform the Onlineformapro. But the stock apears to be less risky and, when comparing its historical volatility, TotalEnergies SE is 3.45 times less risky than Onlineformapro. The stock trades about -0.1 of its potential returns per unit of risk. The Onlineformapro SA is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  230.00  in Onlineformapro SA on September 4, 2024 and sell it today you would earn a total of  26.00  from holding Onlineformapro SA or generate 11.3% return on investment over 90 days.

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

TotalEnergies SE  vs.  Onlineformapro SA

TotalEnergies SE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TotalEnergies SE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Onlineformapro SA

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Onlineformapro SA are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Onlineformapro reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TotalEnergies and Onlineformapro

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

The idea behind TotalEnergies SE and Onlineformapro 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.

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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.