Correlation Between Oil Natural and Can Fin
Specify exactly 2 symbols:
By analyzing existing cross correlation between Oil Natural Gas and Can Fin Homes, you can compare the effects of market volatilities on Oil Natural and Can Fin 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 Can Fin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oil Natural and Can Fin.
Diversification Opportunities for Oil Natural and Can Fin
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oil and Can is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Oil Natural Gas and Can Fin Homes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Can Fin Homes 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 Can Fin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Can Fin Homes has no effect on the direction of Oil Natural i.e., Oil Natural and Can Fin go up and down completely randomly.
Pair Corralation between Oil Natural and Can Fin
Assuming the 90 days trading horizon Oil Natural is expected to generate 1.27 times less return on investment than Can Fin. In addition to that, Oil Natural is 1.06 times more volatile than Can Fin Homes. It trades about 0.04 of its total potential returns per unit of risk. Can Fin Homes is currently generating about 0.05 per unit of volatility. If you would invest 73,762 in Can Fin Homes on September 3, 2024 and sell it today you would earn a total of 7,693 from holding Can Fin Homes or generate 10.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Oil Natural Gas vs. Can Fin Homes
Performance |
| Timeline |
| Oil Natural Gas |
| Can Fin Homes |
Oil Natural and Can Fin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oil Natural and Can Fin
The main advantage of trading using opposite Oil Natural and Can Fin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oil Natural position performs unexpectedly, Can Fin 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 Can Fin will offset losses from the drop in Can Fin's long position.| Oil Natural vs. Ratnamani Metals Tubes | Oil Natural vs. Jubilant Foodworks Limited | Oil Natural vs. Meghmani Organics Limited | Oil Natural vs. Hilton Metal Forging |
| Can Fin vs. Reliance Industries Limited | Can Fin vs. Shipping | Can Fin vs. Indo Borax Chemicals | Can Fin 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |