Correlation Between Oriental Petroleum and COL Financial
Can any of the company-specific risk be diversified away by investing in both Oriental Petroleum and COL Financial 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 Oriental Petroleum and COL Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oriental Petroleum and and COL Financial Group, you can compare the effects of market volatilities on Oriental Petroleum and COL Financial 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 Oriental Petroleum with a short position of COL Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Petroleum and COL Financial.
Diversification Opportunities for Oriental Petroleum and COL Financial
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oriental and COL is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Petroleum and and COL Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COL Financial Group and Oriental Petroleum 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 Oriental Petroleum and are associated (or correlated) with COL Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COL Financial Group has no effect on the direction of Oriental Petroleum i.e., Oriental Petroleum and COL Financial go up and down completely randomly.
Pair Corralation between Oriental Petroleum and COL Financial
Assuming the 90 days trading horizon Oriental Petroleum and is expected to under-perform the COL Financial. In addition to that, Oriental Petroleum is 1.47 times more volatile than COL Financial Group. It trades about -0.35 of its total potential returns per unit of risk. COL Financial Group is currently generating about -0.3 per unit of volatility. If you would invest 194.00 in COL Financial Group on September 12, 2024 and sell it today you would lose (32.00) from holding COL Financial Group or give up 16.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 65.22% |
| Values | Daily Returns |
Oriental Petroleum and vs. COL Financial Group
Performance |
| Timeline |
| Oriental Petroleum and |
| COL Financial Group |
Oriental Petroleum and COL Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriental Petroleum and COL Financial
The main advantage of trading using opposite Oriental Petroleum and COL Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Petroleum position performs unexpectedly, COL Financial 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 COL Financial will offset losses from the drop in COL Financial's long position.| Oriental Petroleum vs. Rizal Commercial Banking | Oriental Petroleum vs. National Reinsurance | Oriental Petroleum vs. Transpacific Broadband Group | Oriental Petroleum vs. Atlas Consolidated Mining |
| COL Financial vs. Semirara Mining Corp | COL Financial vs. Robinsons Retail Holdings | COL Financial vs. National Reinsurance | COL Financial vs. Alliance Select Foods |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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