Correlation Between National Fuel and TotalEnergies
Can any of the company-specific risk be diversified away by investing in both National Fuel and TotalEnergies 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 National Fuel and TotalEnergies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Fuel Gas and TotalEnergies SE ADR, you can compare the effects of market volatilities on National Fuel and TotalEnergies 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 National Fuel with a short position of TotalEnergies. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Fuel and TotalEnergies.
Diversification Opportunities for National Fuel and TotalEnergies
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between National and TotalEnergies is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding National Fuel Gas and TotalEnergies SE ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TotalEnergies SE ADR and National Fuel 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 National Fuel Gas are associated (or correlated) with TotalEnergies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TotalEnergies SE ADR has no effect on the direction of National Fuel i.e., National Fuel and TotalEnergies go up and down completely randomly.
Pair Corralation between National Fuel and TotalEnergies
Considering the 90-day investment horizon National Fuel Gas is expected to generate 1.43 times more return on investment than TotalEnergies. However, National Fuel is 1.43 times more volatile than TotalEnergies SE ADR. It trades about 0.12 of its potential returns per unit of risk. TotalEnergies SE ADR is currently generating about -0.05 per unit of risk. If you would invest 5,293 in National Fuel Gas on February 4, 2024 and sell it today you would earn a total of 194.00 from holding National Fuel Gas or generate 3.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
National Fuel Gas vs. TotalEnergies SE ADR
Performance |
Timeline |
National Fuel Gas |
TotalEnergies SE ADR |
National Fuel and TotalEnergies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with National Fuel and TotalEnergies
The main advantage of trading using opposite National Fuel and TotalEnergies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Fuel position performs unexpectedly, TotalEnergies 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 TotalEnergies will offset losses from the drop in TotalEnergies' long position.National Fuel vs. YPF Sociedad Anonima | National Fuel vs. Eni SpA ADR | National Fuel vs. Ecopetrol SA ADR | National Fuel vs. TotalEnergies SE ADR |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |