Correlation Between Indian Oil and Fino Payments
Specify exactly 2 symbols:
By analyzing existing cross correlation between Indian Oil and Fino Payments Bank, you can compare the effects of market volatilities on Indian Oil and Fino Payments 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 Indian Oil with a short position of Fino Payments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indian Oil and Fino Payments.
Diversification Opportunities for Indian Oil and Fino Payments
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Indian and Fino is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Indian Oil and Fino Payments Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fino Payments Bank and Indian 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 Indian Oil are associated (or correlated) with Fino Payments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fino Payments Bank has no effect on the direction of Indian Oil i.e., Indian Oil and Fino Payments go up and down completely randomly.
Pair Corralation between Indian Oil and Fino Payments
Assuming the 90 days trading horizon Indian Oil is expected to under-perform the Fino Payments. But the stock apears to be less risky and, when comparing its historical volatility, Indian Oil is 1.37 times less risky than Fino Payments. The stock trades about -0.04 of its potential returns per unit of risk. The Fino Payments Bank is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 31,845 in Fino Payments Bank on October 22, 2024 and sell it today you would lose (1,765) from holding Fino Payments Bank or give up 5.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.56% |
| Values | Daily Returns |
Indian Oil vs. Fino Payments Bank
Performance |
| Timeline |
| Indian Oil |
| Fino Payments Bank |
Indian Oil and Fino Payments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indian Oil and Fino Payments
The main advantage of trading using opposite Indian Oil and Fino Payments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indian Oil position performs unexpectedly, Fino Payments 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 Fino Payments will offset losses from the drop in Fino Payments' long position.| Indian Oil vs. Hindcon Chemicals Limited | Indian Oil vs. SAL Steel Limited | Indian Oil vs. Krebs Biochemicals and | Indian Oil vs. Rama Steel Tubes |
| Fino Payments vs. IOL Chemicals and | Fino Payments vs. Privi Speciality Chemicals | Fino Payments vs. Apollo Sindoori Hotels | Fino Payments vs. Juniper Hotels |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |