Correlation Analysis Between Total and Hess

       
Investment Horizon     30 Days    Login   to change
This module allows you to analyze existing cross correlation between Total SA and Hess Corporation. You can compare the effects of market volatilities on Total and Hess 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 Total with a short position of Hess. Please also check ongoing floating volatility patterns of Total and Hess.
 Total SA  vs   Hess Corp.
Daily Returns (%)
HES   TOT   
Benchmark  Embed   Timeline 
Considering 30-days investment horizon, Total SA is expected to under-perform the Hess. But the stock apears to be less risky and, when comparing its historical volatility, Total SA is 1.58 times less risky than Hess. The stock trades about -0.13 of its potential returns per unit of risk. The Hess Corporation is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  5,755  in Hess Corporation on August 4, 2015 and sell it today you would lose (15.00) from holding Hess Corporation or give up 0.26% of portfolio value over 30 days.

Correlation Coefficient

0.8

Parameters

Time Period1 Month [change]
DirectionPositive HES Moved Up vs TOT
StrengthStrong
Accuracy100.0%
ValuesDaily Returns
  

Diversification

Very poor diversification

Overlapping area represents amount of risk that can be diversified away by holding Total SA and Hess Corp. in the same portfolio assuming nothing else is changed

Historical Performance Chart

Comparative Volatility

Predicted Return Density  
Benchmark  Embed   Returns 

Total SA

  

Risk-adjusted Performance

Over the last 30 days Total SA has generated negative risk-adjusted returns adding no value to investors with long positions.

Pair trading matchups for Total

  

Hess

  

Risk-adjusted Performance

Over the last 30 days Hess Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.

Pair trading matchups for Hess