Correlation Between Indian Oil and Geojit Financial
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By analyzing existing cross correlation between Indian Oil and Geojit Financial Services, you can compare the effects of market volatilities on Indian Oil and Geojit Financial 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 Geojit Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indian Oil and Geojit Financial.
Diversification Opportunities for Indian Oil and Geojit Financial
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Indian and Geojit is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Indian Oil and Geojit Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geojit Financial Services 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 Geojit Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geojit Financial Services has no effect on the direction of Indian Oil i.e., Indian Oil and Geojit Financial go up and down completely randomly.
Pair Corralation between Indian Oil and Geojit Financial
Assuming the 90 days trading horizon Indian Oil is expected to generate 0.53 times more return on investment than Geojit Financial. However, Indian Oil is 1.9 times less risky than Geojit Financial. It trades about -0.08 of its potential returns per unit of risk. Geojit Financial Services is currently generating about -0.08 per unit of risk. If you would invest 14,289 in Indian Oil on September 1, 2024 and sell it today you would lose (426.00) from holding Indian Oil or give up 2.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Indian Oil vs. Geojit Financial Services
Performance |
| Timeline |
| Indian Oil |
| Geojit Financial Services |
Indian Oil and Geojit Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indian Oil and Geojit Financial
The main advantage of trading using opposite Indian Oil and Geojit Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indian Oil position performs unexpectedly, Geojit Financial 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 Geojit Financial will offset losses from the drop in Geojit Financial's long position.| Indian Oil vs. Hindustan Construction | Indian Oil vs. Bharat Road Network | Indian Oil vs. Action Construction Equipment | Indian Oil vs. Shivalik Bimetal Controls |
| Geojit Financial vs. Praxis Home Retail | Geojit Financial vs. Hybrid Financial Services | Geojit Financial vs. Karur Vysya Bank | Geojit Financial vs. Life Insurance |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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