Correlation Between BP PLC and Total Produce
Can any of the company-specific risk be diversified away by investing in both BP PLC and Total Produce 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 BP PLC and Total Produce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BP PLC ADR and Total Produce Plc, you can compare the effects of market volatilities on BP PLC and Total Produce 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 BP PLC with a short position of Total Produce. Check out your portfolio center. Please also check ongoing floating volatility patterns of BP PLC and Total Produce.
Diversification Opportunities for BP PLC and Total Produce
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BP PLC and Total is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BP PLC ADR and Total Produce Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Total Produce Plc and BP 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 BP PLC ADR are associated (or correlated) with Total Produce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total Produce Plc has no effect on the direction of BP PLC i.e., BP PLC and Total Produce go up and down completely randomly.
Pair Corralation between BP PLC and Total Produce
If you would invest 2,852 in BP PLC ADR on January 25, 2024 and sell it today you would earn a total of 1,079 from holding BP PLC ADR or generate 37.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
BP PLC ADR vs. Total Produce Plc
Performance |
| Timeline |
| BP PLC ADR |
| Total Produce Plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BP PLC and Total Produce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BP PLC and Total Produce
The main advantage of trading using opposite BP PLC and Total Produce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BP PLC position performs unexpectedly, Total Produce 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 Total Produce will offset losses from the drop in Total Produce's long position.| BP PLC vs. TotalEnergies SE ADR | BP PLC vs. Chevron Corp | BP PLC vs. Exxon Mobil Corp | BP PLC vs. Equinor ASA ADR |
| Total Produce vs. Livermore Investments Group | Total Produce vs. Gulf Investment | Total Produce vs. Seche Environnement SA | Total Produce vs. Zanaga Iron Ore |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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