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 SA 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 SA with a short position of Hess. See also your portfolio center. Please also check ongoing floating volatility patterns of TOTAL SA and Hess.
Considering 30-days investment horizon, TOTAL SA is expected to generate 0.64 times more return on investment than Hess. However, TOTAL SA is 1.56 times less risky than Hess. It trades about -0.06 of its potential returns per unit of risk. Hess Corporation is currently generating about -0.4 per unit of risk. If you would invest 5,116 in TOTAL SA on January 20, 2017 and sell it today you would lose (61.00) from holding TOTAL SA or give up 1.19% of portfolio value over 30 days.
Overlapping area represents the amount of risk that can be diversified away by holding TOTAL S.A. and Hess Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Hess and TOTAL SA 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 TOTAL SA are associated (or correlated) with Hess. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hess has no effect on the direction of TOTAL SA i.e. TOTAL SA and Hess go up and down completely randomly.