Correlation Between Oil Natural and BLB
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By analyzing existing cross correlation between Oil Natural Gas and BLB Limited, you can compare the effects of market volatilities on Oil Natural and BLB 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 Natural with a short position of BLB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oil Natural and BLB.
Diversification Opportunities for Oil Natural and BLB
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Oil and BLB is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Oil Natural Gas and BLB Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BLB Limited and Oil Natural 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 Natural Gas are associated (or correlated) with BLB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BLB Limited has no effect on the direction of Oil Natural i.e., Oil Natural and BLB go up and down completely randomly.
Pair Corralation between Oil Natural and BLB
Assuming the 90 days trading horizon Oil Natural Gas is expected to generate 0.72 times more return on investment than BLB. However, Oil Natural Gas is 1.39 times less risky than BLB. It trades about 0.06 of its potential returns per unit of risk. BLB Limited is currently generating about 0.0 per unit of risk. If you would invest 19,120 in Oil Natural Gas on September 14, 2024 and sell it today you would earn a total of 6,285 from holding Oil Natural Gas or generate 32.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Oil Natural Gas vs. BLB Limited
Performance |
| Timeline |
| Oil Natural Gas |
| BLB Limited |
Oil Natural and BLB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oil Natural and BLB
The main advantage of trading using opposite Oil Natural and BLB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oil Natural position performs unexpectedly, BLB 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 BLB will offset losses from the drop in BLB's long position.| Oil Natural vs. Compucom Software Limited | Oil Natural vs. Tata Chemicals Limited | Oil Natural vs. Rashtriya Chemicals and | Oil Natural vs. Fertilizers and Chemicals |
| BLB vs. Reliance Industries Limited | BLB vs. HDFC Bank Limited | BLB vs. Oil Natural Gas | BLB vs. Kingfa Science Technology |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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