Correlation Between Shell PLC and Repsol SA
Can company-specific risk be reduced by holding Shell PLC and Repsol SA together? Correlation context here helps quantify the diversifiable risk between Shell PLC and Repsol SA.
Analyze Shell PLC versus Repsol SA to see whether pair exposure lowers concentration risk or amplifies it. You can also test a long Shell PLC and short Repsol SA structure to evaluate relative-value behavior. Review volatility patterns in Shell PLC and Repsol SA. Go to your portfolio center
Diversification Opportunities for Shell PLC and Repsol SA
Very poor diversification
The 3 months correlation between Shell and Repsol is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shell PLC and Repsol SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repsol SA and Shell 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 Shell PLC are associated (or correlated) with Repsol SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repsol SA has no effect on the direction of Shell PLC i.e., Shell PLC and Repsol SA go up and down completely randomly.
Pair Corralation between Shell PLC and Repsol SA
Assuming a 90-day horizon Shell PLC is expected to generate 1.54 times less return on investment than Repsol SA. But when comparing it to its historical volatility, Shell PLC is 1.29 times less risky than Repsol SA. It trades about 0.17 of its potential returns per unit of risk. Repsol SA is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you had invested $ 1,727 in Repsol SA on December 16, 2025 and sold it today you would have earned a total of $ 698.00 from holding Repsol SA or generated 40.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shell PLC vs. Repsol SA
Performance |
| Timeline |
| Shell PLC |
Risk-Adjusted Performance
Balanced
Weak | Strong |
| Repsol SA |
Risk-Adjusted Performance
Moderate
Weak | Strong |
Shell PLC and Repsol SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shell PLC and Repsol SA
Pair trading between Shell PLC and Repsol SA can reduce some unsystematic risk by balancing one position against another. A pair setup only works when both legs are monitored with the same discipline as a stand-alone position.| Shell PLC vs. PetroChina Co Ltd | Shell PLC vs. China Petroleum Chemical | Shell PLC vs. OMV AG PK | Shell PLC vs. Equinor ASA |
| Repsol SA vs. OMV Aktiengesellschaft | Repsol SA vs. Inpex Corp ADR | Repsol SA vs. Tenaris SA | Repsol SA vs. Galp Energia SGPS |
Go to your portfolio centerThe analysis presented here should support, not replace, the broader process of selecting and combining portfolio holdings. The practical goal is to improve the mix of assets already under consideration. You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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