Correlation Between Brent Crude and HLNLN
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By analyzing existing cross correlation between Brent Crude Oil and HLNLN 3375 24 MAR 27, you can compare the effects of market volatilities on Brent Crude and HLNLN 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 HLNLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brent Crude and HLNLN.
Diversification Opportunities for Brent Crude and HLNLN
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Brent and HLNLN is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Brent Crude Oil and HLNLN 3375 24 MAR 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HLNLN 3375 24 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 HLNLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HLNLN 3375 24 has no effect on the direction of Brent Crude i.e., Brent Crude and HLNLN go up and down completely randomly.
Pair Corralation between Brent Crude and HLNLN
Assuming the 90 days horizon Brent Crude Oil is expected to under-perform the HLNLN. In addition to that, Brent Crude is 4.28 times more volatile than HLNLN 3375 24 MAR 27. It trades about -0.01 of its total potential returns per unit of risk. HLNLN 3375 24 MAR 27 is currently generating about 0.01 per unit of volatility. If you would invest 9,380 in HLNLN 3375 24 MAR 27 on November 2, 2024 and sell it today you would earn a total of 79.00 from holding HLNLN 3375 24 MAR 27 or generate 0.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 80.98% |
| Values | Daily Returns |
Brent Crude Oil vs. HLNLN 3375 24 MAR 27
Performance |
| Timeline |
| Brent Crude Oil |
| HLNLN 3375 24 |
Brent Crude and HLNLN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brent Crude and HLNLN
The main advantage of trading using opposite Brent Crude and HLNLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brent Crude position performs unexpectedly, HLNLN 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 HLNLN will offset losses from the drop in HLNLN's long position.| Brent Crude vs. Micro Gold Futures | Brent Crude vs. Live Cattle Futures | Brent Crude vs. Class III Milk | Brent Crude vs. Soybean 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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