Correlation Between Cboe UK and Falcon Oil
Specify exactly 2 symbols:
By analyzing existing cross correlation between Cboe UK Consumer and Falcon Oil Gas, you can compare the effects of market volatilities on Cboe UK and Falcon 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 Cboe UK with a short position of Falcon Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Falcon Oil.
Diversification Opportunities for Cboe UK and Falcon Oil
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cboe and Falcon is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and Falcon Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Falcon Oil Gas and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with Falcon Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Falcon Oil Gas has no effect on the direction of Cboe UK i.e., Cboe UK and Falcon Oil go up and down completely randomly.
Pair Corralation between Cboe UK and Falcon Oil
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.34 times more return on investment than Falcon Oil. However, Cboe UK Consumer is 2.93 times less risky than Falcon Oil. It trades about 0.07 of its potential returns per unit of risk. Falcon Oil Gas is currently generating about -0.03 per unit of risk. If you would invest 2,539,997 in Cboe UK Consumer on August 28, 2024 and sell it today you would earn a total of 702,994 from holding Cboe UK Consumer or generate 27.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.61% |
| Values | Daily Returns |
Cboe UK Consumer vs. Falcon Oil Gas
Performance |
| Timeline |
Cboe UK and Falcon Oil Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Falcon Oil Gas
Pair trading matchups for Falcon Oil
Pair Trading with Cboe UK and Falcon Oil
The main advantage of trading using opposite Cboe UK and Falcon Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, Falcon 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 Falcon Oil will offset losses from the drop in Falcon Oil's long position.| Cboe UK vs. Skandinaviska Enskilda Banken | Cboe UK vs. Arrow Electronics | Cboe UK vs. Qurate Retail Series | Cboe UK vs. Alior Bank SA |
| Falcon Oil vs. Zoom Video Communications | Falcon Oil vs. Enbridge | Falcon Oil vs. Endo International PLC |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |