Correlation Between Indian Oil and State Trading
Specify exactly 2 symbols:
By analyzing existing cross correlation between Indian Oil and The State Trading, you can compare the effects of market volatilities on Indian Oil and State Trading 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 State Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indian Oil and State Trading.
Diversification Opportunities for Indian Oil and State Trading
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Indian and State is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Indian Oil and The State Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Trading 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 State Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Trading has no effect on the direction of Indian Oil i.e., Indian Oil and State Trading go up and down completely randomly.
Pair Corralation between Indian Oil and State Trading
Assuming the 90 days trading horizon Indian Oil is expected to under-perform the State Trading. But the stock apears to be less risky and, when comparing its historical volatility, Indian Oil is 2.87 times less risky than State Trading. The stock trades about -0.19 of its potential returns per unit of risk. The The State Trading is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 14,364 in The State Trading on August 28, 2024 and sell it today you would earn a total of 666.00 from holding The State Trading or generate 4.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Indian Oil vs. The State Trading
Performance |
| Timeline |
| Indian Oil |
| State Trading |
Indian Oil and State Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indian Oil and State Trading
The main advantage of trading using opposite Indian Oil and State Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indian Oil position performs unexpectedly, State Trading 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 State Trading will offset losses from the drop in State Trading's long position.| Indian Oil vs. JGCHEMICALS LIMITED | Indian Oil vs. Omkar Speciality Chemicals | Indian Oil vs. NRB Industrial Bearings | Indian Oil vs. Dharani SugarsChemicals Limited |
| State Trading vs. Kingfa Science Technology | State Trading vs. Rico Auto Industries | State Trading vs. GACM Technologies Limited | State Trading vs. COSMO FIRST 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |