Correlation Between InPlay Oil and PACIFIC ONLINE
Can any of the company-specific risk be diversified away by investing in both InPlay Oil and PACIFIC ONLINE 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 InPlay Oil and PACIFIC ONLINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InPlay Oil Corp and PACIFIC ONLINE, you can compare the effects of market volatilities on InPlay Oil and PACIFIC ONLINE 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 InPlay Oil with a short position of PACIFIC ONLINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of InPlay Oil and PACIFIC ONLINE.
Diversification Opportunities for InPlay Oil and PACIFIC ONLINE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between InPlay and PACIFIC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding InPlay Oil Corp and PACIFIC ONLINE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACIFIC ONLINE and InPlay Oil 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 InPlay Oil Corp are associated (or correlated) with PACIFIC ONLINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACIFIC ONLINE has no effect on the direction of InPlay Oil i.e., InPlay Oil and PACIFIC ONLINE go up and down completely randomly.
Pair Corralation between InPlay Oil and PACIFIC ONLINE
If you would invest 15.00 in PACIFIC ONLINE on November 7, 2024 and sell it today you would earn a total of 0.00 from holding PACIFIC ONLINE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
InPlay Oil Corp vs. PACIFIC ONLINE
Performance |
| Timeline |
| InPlay Oil Corp |
| PACIFIC ONLINE |
InPlay Oil and PACIFIC ONLINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InPlay Oil and PACIFIC ONLINE
The main advantage of trading using opposite InPlay Oil and PACIFIC ONLINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InPlay Oil position performs unexpectedly, PACIFIC ONLINE 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 PACIFIC ONLINE will offset losses from the drop in PACIFIC ONLINE's long position.| InPlay Oil vs. PICKN PAY STORES | InPlay Oil vs. JAPAN TOBACCO UNSPADR12 | InPlay Oil vs. Firan Technology Group | InPlay Oil vs. Japan Tobacco |
| PACIFIC ONLINE vs. GMO Internet | PACIFIC ONLINE vs. Casio Computer CoLtd | PACIFIC ONLINE vs. Hua Hong Semiconductor | PACIFIC ONLINE vs. Nordic Semiconductor ASA |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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