Correlation Between Indian Oil and Man Infraconstructio
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By analyzing existing cross correlation between Indian Oil and Man Infraconstruction Limited, you can compare the effects of market volatilities on Indian Oil and Man Infraconstructio 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 Man Infraconstructio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indian Oil and Man Infraconstructio.
Diversification Opportunities for Indian Oil and Man Infraconstructio
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Indian and Man is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Indian Oil and Man Infraconstruction Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Man Infraconstruction 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 Man Infraconstructio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Man Infraconstruction has no effect on the direction of Indian Oil i.e., Indian Oil and Man Infraconstructio go up and down completely randomly.
Pair Corralation between Indian Oil and Man Infraconstructio
Assuming the 90 days trading horizon Indian Oil is expected to generate 0.82 times more return on investment than Man Infraconstructio. However, Indian Oil is 1.22 times less risky than Man Infraconstructio. It trades about -0.14 of its potential returns per unit of risk. Man Infraconstruction Limited is currently generating about -0.43 per unit of risk. If you would invest 13,640 in Indian Oil on October 28, 2024 and sell it today you would lose (814.00) from holding Indian Oil or give up 5.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indian Oil vs. Man Infraconstruction Limited
Performance |
| Timeline |
| Indian Oil |
| Man Infraconstruction |
Indian Oil and Man Infraconstructio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indian Oil and Man Infraconstructio
The main advantage of trading using opposite Indian Oil and Man Infraconstructio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indian Oil position performs unexpectedly, Man Infraconstructio 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 Man Infraconstructio will offset losses from the drop in Man Infraconstructio's long position.| Indian Oil vs. Gujarat Lease Financing | Indian Oil vs. Bombay Burmah Trading | Indian Oil vs. AUTHUM INVESTMENT INFRASTRUCTU | Indian Oil vs. Sapphire Foods India |
| Man Infraconstructio vs. Indian Card Clothing | Man Infraconstructio vs. Shaily Engineering Plastics | Man Infraconstructio vs. Chembond Chemicals | Man Infraconstructio vs. Kewal Kiran Clothing |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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