Correlation Between Brent Crude and 963320AT3
Specify exactly 2 symbols:
By analyzing existing cross correlation between Brent Crude Oil and WHIRLPOOL P 37, you can compare the effects of market volatilities on Brent Crude and 963320AT3 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 963320AT3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brent Crude and 963320AT3.
Diversification Opportunities for Brent Crude and 963320AT3
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Brent and 963320AT3 is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Brent Crude Oil and WHIRLPOOL P 37 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WHIRLPOOL P 37 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 963320AT3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WHIRLPOOL P 37 has no effect on the direction of Brent Crude i.e., Brent Crude and 963320AT3 go up and down completely randomly.
Pair Corralation between Brent Crude and 963320AT3
Assuming the 90 days horizon Brent Crude Oil is expected to generate 2.91 times more return on investment than 963320AT3. However, Brent Crude is 2.91 times more volatile than WHIRLPOOL P 37. It trades about 0.01 of its potential returns per unit of risk. WHIRLPOOL P 37 is currently generating about -0.3 per unit of risk. If you would invest 7,593 in Brent Crude Oil on November 2, 2024 and sell it today you would lose (4.00) from holding Brent Crude Oil or give up 0.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Brent Crude Oil vs. WHIRLPOOL P 37
Performance |
| Timeline |
| Brent Crude Oil |
| WHIRLPOOL P 37 |
Brent Crude and 963320AT3 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brent Crude and 963320AT3
The main advantage of trading using opposite Brent Crude and 963320AT3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brent Crude position performs unexpectedly, 963320AT3 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 963320AT3 will offset losses from the drop in 963320AT3'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 |
| 963320AT3 vs. AEP TEX INC | 963320AT3 vs. US BANK NATIONAL | 963320AT3 vs. Albertsons Companies | 963320AT3 vs. Innovation Beverage Group |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |