Correlation Between INDIKA ENERGY and CLEAR CHANNEL
Can any of the company-specific risk be diversified away by investing in both INDIKA ENERGY and CLEAR CHANNEL 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 INDIKA ENERGY and CLEAR CHANNEL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INDIKA ENERGY and CLEAR CHANNEL OHA, you can compare the effects of market volatilities on INDIKA ENERGY and CLEAR CHANNEL 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 INDIKA ENERGY with a short position of CLEAR CHANNEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of INDIKA ENERGY and CLEAR CHANNEL.
Diversification Opportunities for INDIKA ENERGY and CLEAR CHANNEL
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INDIKA and CLEAR is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding INDIKA ENERGY and CLEAR CHANNEL OHA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLEAR CHANNEL OHA and INDIKA ENERGY 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 INDIKA ENERGY are associated (or correlated) with CLEAR CHANNEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLEAR CHANNEL OHA has no effect on the direction of INDIKA ENERGY i.e., INDIKA ENERGY and CLEAR CHANNEL go up and down completely randomly.
Pair Corralation between INDIKA ENERGY and CLEAR CHANNEL
Assuming the 90 days trading horizon INDIKA ENERGY is expected to under-perform the CLEAR CHANNEL. In addition to that, INDIKA ENERGY is 1.23 times more volatile than CLEAR CHANNEL OHA. It trades about -0.01 of its total potential returns per unit of risk. CLEAR CHANNEL OHA is currently generating about 0.04 per unit of volatility. If you would invest 96.00 in CLEAR CHANNEL OHA on September 25, 2024 and sell it today you would earn a total of 38.00 from holding CLEAR CHANNEL OHA or generate 39.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
INDIKA ENERGY vs. CLEAR CHANNEL OHA
Performance |
| Timeline |
| INDIKA ENERGY |
| CLEAR CHANNEL OHA |
INDIKA ENERGY and CLEAR CHANNEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INDIKA ENERGY and CLEAR CHANNEL
The main advantage of trading using opposite INDIKA ENERGY and CLEAR CHANNEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INDIKA ENERGY position performs unexpectedly, CLEAR CHANNEL 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 CLEAR CHANNEL will offset losses from the drop in CLEAR CHANNEL's long position.| INDIKA ENERGY vs. TELES Informationstechnologien AG | INDIKA ENERGY vs. QBE Insurance Group | INDIKA ENERGY vs. Zurich Insurance Group | INDIKA ENERGY vs. Automatic Data Processing |
| CLEAR CHANNEL vs. Cleanaway Waste Management | CLEAR CHANNEL vs. North American Construction | CLEAR CHANNEL vs. Ares Management Corp | CLEAR CHANNEL vs. Brockhaus Capital Management |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |