Correlation Between Brent Crude and 124857AT0
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By analyzing existing cross correlation between Brent Crude Oil and CBS P NEW, you can compare the effects of market volatilities on Brent Crude and 124857AT0 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 Brent Crude with a short position of 124857AT0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brent Crude and 124857AT0.
Diversification Opportunities for Brent Crude and 124857AT0
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Brent and 124857AT0 is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Brent Crude Oil and CBS P NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBS P NEW and Brent Crude 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 Brent Crude Oil are associated (or correlated) with 124857AT0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBS P NEW has no effect on the direction of Brent Crude i.e., Brent Crude and 124857AT0 go up and down completely randomly.
Pair Corralation between Brent Crude and 124857AT0
Assuming the 90 days horizon Brent Crude Oil is expected to generate 3.96 times more return on investment than 124857AT0. However, Brent Crude is 3.96 times more volatile than CBS P NEW. It trades about 0.02 of its potential returns per unit of risk. CBS P NEW is currently generating about -0.04 per unit of risk. If you would invest 7,375 in Brent Crude Oil on November 2, 2024 and sell it today you would earn a total of 214.00 from holding Brent Crude Oil or generate 2.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 83.18% |
| Values | Daily Returns |
Brent Crude Oil vs. CBS P NEW
Performance |
| Timeline |
| Brent Crude Oil |
| CBS P NEW |
Brent Crude and 124857AT0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brent Crude and 124857AT0
The main advantage of trading using opposite Brent Crude and 124857AT0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brent Crude position performs unexpectedly, 124857AT0 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 124857AT0 will offset losses from the drop in 124857AT0's long position.| Brent Crude vs. Natural Gas | Brent Crude vs. Lean Hogs Futures | Brent Crude vs. Live Cattle Futures | Brent Crude vs. Lumber Futures |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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