Correlation Between Cheetah Oil and CLP Holdings
Can any of the company-specific risk be diversified away by investing in both Cheetah Oil and CLP Holdings at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Cheetah Oil and CLP Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cheetah Oil Gas and CLP Holdings, you can compare the effects of market volatilities on Cheetah Oil and CLP Holdings 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 Cheetah Oil with a short position of CLP Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheetah Oil and CLP Holdings.
Diversification Opportunities for Cheetah Oil and CLP Holdings
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cheetah and CLP is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Cheetah Oil Gas and CLP Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLP Holdings and Cheetah Oil 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 Cheetah Oil Gas are associated (or correlated) with CLP Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLP Holdings has no effect on the direction of Cheetah Oil i.e., Cheetah Oil and CLP Holdings go up and down completely randomly.
Pair Corralation between Cheetah Oil and CLP Holdings
Given the investment horizon of 90 days Cheetah Oil Gas is expected to generate 27.37 times more return on investment than CLP Holdings. However, Cheetah Oil is 27.37 times more volatile than CLP Holdings. It trades about 0.22 of its potential returns per unit of risk. CLP Holdings is currently generating about 0.19 per unit of risk. If you would invest 0.01 in Cheetah Oil Gas on October 21, 2024 and sell it today you would earn a total of 0.01 from holding Cheetah Oil Gas or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Cheetah Oil Gas vs. CLP Holdings
Performance |
| Timeline |
| Cheetah Oil Gas |
| CLP Holdings |
Cheetah Oil and CLP Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheetah Oil and CLP Holdings
The main advantage of trading using opposite Cheetah Oil and CLP Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheetah Oil position performs unexpectedly, CLP Holdings 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 CLP Holdings will offset losses from the drop in CLP Holdings' long position.| Cheetah Oil vs. CNX Resources Corp | Cheetah Oil vs. MV Oil Trust | Cheetah Oil vs. San Juan Basin | Cheetah Oil vs. VOC Energy Trust |
| CLP Holdings vs. Hong Kong and | CLP Holdings vs. Power Assets Holdings | CLP Holdings vs. Swire Pacific | CLP Holdings vs. Sun Hung Kai |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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