Correlation Between Oil Terminal and Teraplast Bist
Can any of the company-specific risk be diversified away by investing in both Oil Terminal and Teraplast Bist 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 Oil Terminal and Teraplast Bist into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oil Terminal C and Teraplast Bist, you can compare the effects of market volatilities on Oil Terminal and Teraplast Bist 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 Oil Terminal with a short position of Teraplast Bist. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oil Terminal and Teraplast Bist.
Diversification Opportunities for Oil Terminal and Teraplast Bist
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oil and Teraplast is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Oil Terminal C and Teraplast Bist in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teraplast Bist and Oil Terminal 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 Oil Terminal C are associated (or correlated) with Teraplast Bist. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teraplast Bist has no effect on the direction of Oil Terminal i.e., Oil Terminal and Teraplast Bist go up and down completely randomly.
Pair Corralation between Oil Terminal and Teraplast Bist
Assuming the 90 days trading horizon Oil Terminal C is expected to generate 0.85 times more return on investment than Teraplast Bist. However, Oil Terminal C is 1.18 times less risky than Teraplast Bist. It trades about 0.01 of its potential returns per unit of risk. Teraplast Bist is currently generating about -0.22 per unit of risk. If you would invest 12.00 in Oil Terminal C on September 5, 2024 and sell it today you would earn a total of 0.00 from holding Oil Terminal C or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oil Terminal C vs. Teraplast Bist
Performance |
| Timeline |
| Oil Terminal C |
| Teraplast Bist |
Oil Terminal and Teraplast Bist Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oil Terminal and Teraplast Bist
The main advantage of trading using opposite Oil Terminal and Teraplast Bist positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oil Terminal position performs unexpectedly, Teraplast Bist 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 Teraplast Bist will offset losses from the drop in Teraplast Bist's long position.| Oil Terminal vs. Teraplast Bist | Oil Terminal vs. Electroarges S | Oil Terminal vs. IAR SA | Oil Terminal vs. Compa Sibiu |
| Teraplast Bist vs. AROBS TRANSILVANIA SOFTWARE | Teraplast Bist vs. Infinity Capital Investments | Teraplast Bist vs. Patria Bank SA | Teraplast Bist vs. IHUNT TECHNOLOGY IMPORT EXPORT |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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