Correlation Between Digjam and Indian OilLimited
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By analyzing existing cross correlation between Digjam Limited and Indian Oil, you can compare the effects of market volatilities on Digjam and Indian OilLimited 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 Digjam with a short position of Indian OilLimited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digjam and Indian OilLimited.
Diversification Opportunities for Digjam and Indian OilLimited
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Digjam and Indian is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Digjam Limited and Indian Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indian OilLimited and Digjam 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 Digjam Limited are associated (or correlated) with Indian OilLimited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indian OilLimited has no effect on the direction of Digjam i.e., Digjam and Indian OilLimited go up and down completely randomly.
Pair Corralation between Digjam and Indian OilLimited
Assuming the 90 days trading horizon Digjam Limited is expected to generate 1.33 times more return on investment than Indian OilLimited. However, Digjam is 1.33 times more volatile than Indian Oil. It trades about 0.03 of its potential returns per unit of risk. Indian Oil is currently generating about -0.09 per unit of risk. If you would invest 8,273 in Digjam Limited on August 30, 2024 and sell it today you would earn a total of 66.00 from holding Digjam Limited or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Digjam Limited vs. Indian Oil
Performance |
| Timeline |
| Digjam Limited |
| Indian OilLimited |
Digjam and Indian OilLimited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digjam and Indian OilLimited
The main advantage of trading using opposite Digjam and Indian OilLimited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digjam position performs unexpectedly, Indian OilLimited 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 Indian OilLimited will offset losses from the drop in Indian OilLimited's long position.| Digjam vs. Infomedia Press Limited | Digjam vs. Hilton Metal Forging | Digjam vs. Entertainment Network Limited | Digjam vs. Indian Metals Ferro |
| Indian OilLimited vs. Digjam Limited | Indian OilLimited vs. Gujarat Raffia Industries | Indian OilLimited vs. Consolidated Construction Consortium | Indian OilLimited vs. PB Fintech Limited |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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