Correlation Between Cheetah Oil and Wicket Gaming
Can any of the company-specific risk be diversified away by investing in both Cheetah Oil and Wicket Gaming 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 Wicket Gaming 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 Wicket Gaming AB, you can compare the effects of market volatilities on Cheetah Oil and Wicket Gaming 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 Wicket Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheetah Oil and Wicket Gaming.
Diversification Opportunities for Cheetah Oil and Wicket Gaming
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cheetah and Wicket is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding Cheetah Oil Gas and Wicket Gaming AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wicket Gaming AB 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 Wicket Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wicket Gaming AB has no effect on the direction of Cheetah Oil i.e., Cheetah Oil and Wicket Gaming go up and down completely randomly.
Pair Corralation between Cheetah Oil and Wicket Gaming
Given the investment horizon of 90 days Cheetah Oil Gas is expected to generate 60.77 times more return on investment than Wicket Gaming. However, Cheetah Oil is 60.77 times more volatile than Wicket Gaming AB. It trades about 0.05 of its potential returns per unit of risk. Wicket Gaming AB is currently generating about -0.05 per unit of risk. If you would invest 0.01 in Cheetah Oil Gas on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Cheetah Oil Gas or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 98.3% |
| Values | Daily Returns |
Cheetah Oil Gas vs. Wicket Gaming AB
Performance |
| Timeline |
| Cheetah Oil Gas |
| Wicket Gaming AB |
Cheetah Oil and Wicket Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheetah Oil and Wicket Gaming
The main advantage of trading using opposite Cheetah Oil and Wicket Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheetah Oil position performs unexpectedly, Wicket Gaming 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 Wicket Gaming will offset losses from the drop in Wicket Gaming's long position.| Cheetah Oil vs. Permian Resources | Cheetah Oil vs. Devon Energy | Cheetah Oil vs. EOG Resources | Cheetah Oil vs. Coterra Energy |
| Wicket Gaming vs. GDEV Inc | Wicket Gaming vs. Doubledown Interactive Co | Wicket Gaming vs. Playstudios | Wicket Gaming vs. SohuCom |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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