Correlation Between TechnipFMC PLC and CJ Energy
Can any of the company-specific risk be diversified away by investing in both TechnipFMC PLC and CJ Energy 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 TechnipFMC PLC and CJ Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TechnipFMC PLC and CJ Energy Services, you can compare the effects of market volatilities on TechnipFMC PLC and CJ Energy 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 TechnipFMC PLC with a short position of CJ Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of TechnipFMC PLC and CJ Energy.
Diversification Opportunities for TechnipFMC PLC and CJ Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TechnipFMC and CJ Energy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TechnipFMC PLC and CJ Energy Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CJ Energy Services and TechnipFMC 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 TechnipFMC PLC are associated (or correlated) with CJ Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CJ Energy Services has no effect on the direction of TechnipFMC PLC i.e., TechnipFMC PLC and CJ Energy go up and down completely randomly.
Pair Corralation between TechnipFMC PLC and CJ Energy
If you would invest 2,534 in TechnipFMC PLC on January 24, 2024 and sell it today you would earn a total of 4.00 from holding TechnipFMC PLC or generate 0.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
TechnipFMC PLC vs. CJ Energy Services
Performance |
| Timeline |
| TechnipFMC PLC |
| CJ Energy Services |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
TechnipFMC PLC and CJ Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TechnipFMC PLC and CJ Energy
The main advantage of trading using opposite TechnipFMC PLC and CJ Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TechnipFMC PLC position performs unexpectedly, CJ Energy 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 CJ Energy will offset losses from the drop in CJ Energy's long position.The idea behind TechnipFMC PLC and CJ Energy Services 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.| CJ Energy vs. Transocean | CJ Energy vs. Kura Sushi USA | CJ Energy vs. Chipotle Mexican Grill | CJ Energy vs. Dominos Pizza |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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