Correlation Between Oil Natural and N B
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By analyzing existing cross correlation between Oil Natural Gas and N B I, you can compare the effects of market volatilities on Oil Natural and N B 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 N B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oil Natural and N B.
Diversification Opportunities for Oil Natural and N B
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oil and NBIFIN is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Oil Natural Gas and N B I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on N B I 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 N B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of N B I has no effect on the direction of Oil Natural i.e., Oil Natural and N B go up and down completely randomly.
Pair Corralation between Oil Natural and N B
Assuming the 90 days trading horizon Oil Natural Gas is expected to under-perform the N B. But the stock apears to be less risky and, when comparing its historical volatility, Oil Natural Gas is 2.26 times less risky than N B. The stock trades about -0.24 of its potential returns per unit of risk. The N B I is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 262,215 in N B I on August 24, 2024 and sell it today you would lose (715.00) from holding N B I or give up 0.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oil Natural Gas vs. N B I
Performance |
| Timeline |
| Oil Natural Gas |
| N B I |
Oil Natural and N B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oil Natural and N B
The main advantage of trading using opposite Oil Natural and N B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oil Natural position performs unexpectedly, N B 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 N B will offset losses from the drop in N B's long position.| Oil Natural vs. Tamilnad Mercantile Bank | Oil Natural vs. State Bank of | Oil Natural vs. Ankit Metal Power | Oil Natural vs. Motilal Oswal Financial |
| N B vs. Viceroy Hotels Limited | N B vs. Lakshmi Finance Industrial | N B vs. Lemon Tree Hotels | N B vs. Shyam Metalics and |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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