Correlation Between Bucharest BET-NG and Oil Terminal
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By analyzing existing cross correlation between Bucharest BET-NG and Oil Terminal C, you can compare the effects of market volatilities on Bucharest BET-NG and Oil Terminal 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 Bucharest BET-NG with a short position of Oil Terminal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bucharest BET-NG and Oil Terminal.
Diversification Opportunities for Bucharest BET-NG and Oil Terminal
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bucharest and Oil is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Bucharest BET-NG and Oil Terminal C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oil Terminal C and Bucharest BET-NG 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 Bucharest BET-NG are associated (or correlated) with Oil Terminal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oil Terminal C has no effect on the direction of Bucharest BET-NG i.e., Bucharest BET-NG and Oil Terminal go up and down completely randomly.
Pair Corralation between Bucharest BET-NG and Oil Terminal
Assuming the 90 days trading horizon Bucharest BET-NG is expected to under-perform the Oil Terminal. But the index apears to be less risky and, when comparing its historical volatility, Bucharest BET-NG is 3.53 times less risky than Oil Terminal. The index trades about -0.2 of its potential returns per unit of risk. The Oil Terminal C is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 12.00 in Oil Terminal C on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Oil Terminal C or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bucharest BET-NG vs. Oil Terminal C
Performance |
| Timeline |
Bucharest BET-NG and Oil Terminal Volatility Contrast
Predicted Return Density |
| Returns |
Bucharest BET-NG
Pair trading matchups for Bucharest BET-NG
Oil Terminal C
Pair trading matchups for Oil Terminal
Pair Trading with Bucharest BET-NG and Oil Terminal
The main advantage of trading using opposite Bucharest BET-NG and Oil Terminal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bucharest BET-NG position performs unexpectedly, Oil Terminal 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 Oil Terminal will offset losses from the drop in Oil Terminal's long position.| Bucharest BET-NG vs. TRANSILVANIA LEASING SI | Bucharest BET-NG vs. Evergent Investments SA | Bucharest BET-NG vs. Infinity Capital Investments | Bucharest BET-NG vs. AROBS TRANSILVANIA SOFTWARE |
| Oil Terminal vs. AROBS TRANSILVANIA SOFTWARE | Oil Terminal vs. Safetech Innovations SA | Oil Terminal vs. Evergent Investments SA | Oil Terminal vs. Turism Hotelur |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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