Correlation Between BAG Films and Indian Oil
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By analyzing existing cross correlation between BAG Films and and Indian Oil, you can compare the effects of market volatilities on BAG Films and Indian 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 BAG Films with a short position of Indian Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of BAG Films and Indian Oil.
Diversification Opportunities for BAG Films and Indian Oil
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BAG and Indian is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding BAG Films and and Indian Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indian Oil and BAG Films 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 BAG Films and are associated (or correlated) with Indian Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indian Oil has no effect on the direction of BAG Films i.e., BAG Films and Indian Oil go up and down completely randomly.
Pair Corralation between BAG Films and Indian Oil
Assuming the 90 days trading horizon BAG Films and is expected to under-perform the Indian Oil. In addition to that, BAG Films is 1.57 times more volatile than Indian Oil. It trades about -0.31 of its total potential returns per unit of risk. Indian Oil is currently generating about -0.26 per unit of volatility. If you would invest 14,310 in Indian Oil on October 17, 2024 and sell it today you would lose (1,615) from holding Indian Oil or give up 11.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BAG Films and vs. Indian Oil
Performance |
| Timeline |
| BAG Films |
| Indian Oil |
BAG Films and Indian Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BAG Films and Indian Oil
The main advantage of trading using opposite BAG Films and Indian Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BAG Films position performs unexpectedly, Indian 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 Indian Oil will offset losses from the drop in Indian Oil's long position.| BAG Films vs. State Bank of | BAG Films vs. Life Insurance | BAG Films vs. HDFC Bank Limited | BAG Films vs. ICICI Bank Limited |
| Indian Oil vs. SINCLAIRS HOTELS ORD | Indian Oil vs. Apollo Hospitals Enterprise | Indian Oil vs. Country Club Hospitality | Indian Oil vs. EIH Associated Hotels |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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