Correlation Between Motor Oil and Admie Holding
Can any of the company-specific risk be diversified away by investing in both Motor Oil and Admie Holding 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 Motor Oil and Admie Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Motor Oil Corinth and Admie Holding SA, you can compare the effects of market volatilities on Motor Oil and Admie Holding 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 Motor Oil with a short position of Admie Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Motor Oil and Admie Holding.
Diversification Opportunities for Motor Oil and Admie Holding
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Motor and Admie is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Motor Oil Corinth and Admie Holding SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Admie Holding SA and Motor 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 Motor Oil Corinth are associated (or correlated) with Admie Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Admie Holding SA has no effect on the direction of Motor Oil i.e., Motor Oil and Admie Holding go up and down completely randomly.
Pair Corralation between Motor Oil and Admie Holding
Assuming the 90 days trading horizon Motor Oil Corinth is expected to under-perform the Admie Holding. In addition to that, Motor Oil is 1.04 times more volatile than Admie Holding SA. It trades about -0.16 of its total potential returns per unit of risk. Admie Holding SA is currently generating about -0.01 per unit of volatility. If you would invest 238.00 in Admie Holding SA on August 28, 2024 and sell it today you would lose (1.00) from holding Admie Holding SA or give up 0.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Motor Oil Corinth vs. Admie Holding SA
Performance |
| Timeline |
| Motor Oil Corinth |
| Admie Holding SA |
Motor Oil and Admie Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Motor Oil and Admie Holding
The main advantage of trading using opposite Motor Oil and Admie Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Motor Oil position performs unexpectedly, Admie Holding 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 Admie Holding will offset losses from the drop in Admie Holding's long position.| Motor Oil vs. Mytilineos SA | Motor Oil vs. Hellenic Petroleum SA | Motor Oil vs. Greek Organization of | Motor Oil vs. Hellenic Telecommunications Organization |
| Admie Holding vs. Mytilineos SA | Admie Holding vs. Motor Oil Corinth | Admie Holding vs. Hellenic Petroleum SA | Admie Holding vs. National Bank of |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |