Correlation Between TotalEnergies and Tiger Oil

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both TotalEnergies and Tiger Oil 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 Tiger Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TotalEnergies SE ADR and Tiger Oil And, you can compare the effects of market volatilities on TotalEnergies and Tiger Oil 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 Tiger Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of TotalEnergies and Tiger Oil.

Diversification Opportunities for TotalEnergies and Tiger Oil

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between TotalEnergies and Tiger is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TotalEnergies SE ADR and Tiger Oil And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiger Oil And 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 ADR are associated (or correlated) with Tiger Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiger Oil And has no effect on the direction of TotalEnergies i.e., TotalEnergies and Tiger Oil go up and down completely randomly.

Pair Corralation between TotalEnergies and Tiger Oil

If you would invest  6,454  in TotalEnergies SE ADR on December 29, 2023 and sell it today you would earn a total of  429.00  from holding TotalEnergies SE ADR or generate 6.65% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

TotalEnergies SE ADR  vs.  Tiger Oil And

 Performance 
       Timeline  
TotalEnergies SE ADR 

Risk-Adjusted Performance

2 of 100

 
Low
 
High
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in TotalEnergies SE ADR are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, TotalEnergies is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.
Tiger Oil And 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Tiger Oil And has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Tiger Oil is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

TotalEnergies and Tiger Oil Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with TotalEnergies and Tiger Oil

The main advantage of trading using opposite TotalEnergies and Tiger Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TotalEnergies position performs unexpectedly, Tiger Oil 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 Tiger Oil will offset losses from the drop in Tiger Oil's long position.
The idea behind TotalEnergies SE ADR and Tiger Oil And 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.
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.

Other Complementary Tools

Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon