Correlation Between Oil Natural and POWERGRID Infrastructure
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By analyzing existing cross correlation between Oil Natural Gas and POWERGRID Infrastructure Investment, you can compare the effects of market volatilities on Oil Natural and POWERGRID Infrastructure 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 POWERGRID Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oil Natural and POWERGRID Infrastructure.
Diversification Opportunities for Oil Natural and POWERGRID Infrastructure
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Oil and POWERGRID is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Oil Natural Gas and POWERGRID Infrastructure Inves in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POWERGRID Infrastructure 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 POWERGRID Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POWERGRID Infrastructure has no effect on the direction of Oil Natural i.e., Oil Natural and POWERGRID Infrastructure go up and down completely randomly.
Pair Corralation between Oil Natural and POWERGRID Infrastructure
Assuming the 90 days trading horizon Oil Natural Gas is expected to generate 3.73 times more return on investment than POWERGRID Infrastructure. However, Oil Natural is 3.73 times more volatile than POWERGRID Infrastructure Investment. It trades about -0.02 of its potential returns per unit of risk. POWERGRID Infrastructure Investment is currently generating about -0.15 per unit of risk. If you would invest 26,979 in Oil Natural Gas on November 28, 2024 and sell it today you would lose (3,679) from holding Oil Natural Gas or give up 13.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.46% |
| Values | Daily Returns |
Oil Natural Gas vs. POWERGRID Infrastructure Inves
Performance |
| Timeline |
| Oil Natural Gas |
| POWERGRID Infrastructure |
Oil Natural and POWERGRID Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oil Natural and POWERGRID Infrastructure
The main advantage of trading using opposite Oil Natural and POWERGRID Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oil Natural position performs unexpectedly, POWERGRID Infrastructure 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 POWERGRID Infrastructure will offset losses from the drop in POWERGRID Infrastructure's long position.| Oil Natural vs. Computer Age Management | Oil Natural vs. Southern Petrochemicals Industries | Oil Natural vs. Allied Blenders Distillers | Oil Natural vs. Dharani SugarsChemicals Limited |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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