Correlation Between Salzer Electronics and Oil Natural
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By analyzing existing cross correlation between Salzer Electronics Limited and Oil Natural Gas, you can compare the effects of market volatilities on Salzer Electronics and Oil Natural 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 Salzer Electronics with a short position of Oil Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salzer Electronics and Oil Natural.
Diversification Opportunities for Salzer Electronics and Oil Natural
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Salzer and Oil is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Salzer Electronics Limited and Oil Natural Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oil Natural Gas and Salzer Electronics 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 Salzer Electronics Limited are associated (or correlated) with Oil Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oil Natural Gas has no effect on the direction of Salzer Electronics i.e., Salzer Electronics and Oil Natural go up and down completely randomly.
Pair Corralation between Salzer Electronics and Oil Natural
Assuming the 90 days trading horizon Salzer Electronics Limited is expected to generate 1.94 times more return on investment than Oil Natural. However, Salzer Electronics is 1.94 times more volatile than Oil Natural Gas. It trades about 0.12 of its potential returns per unit of risk. Oil Natural Gas is currently generating about -0.04 per unit of risk. If you would invest 128,415 in Salzer Electronics Limited on October 9, 2024 and sell it today you would earn a total of 10,150 from holding Salzer Electronics Limited or generate 7.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salzer Electronics Limited vs. Oil Natural Gas
Performance |
| Timeline |
| Salzer Electronics |
| Oil Natural Gas |
Salzer Electronics and Oil Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salzer Electronics and Oil Natural
The main advantage of trading using opposite Salzer Electronics and Oil Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salzer Electronics position performs unexpectedly, Oil Natural 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 Oil Natural will offset losses from the drop in Oil Natural's long position.| Salzer Electronics vs. MRF Limited | Salzer Electronics vs. Bosch Limited | Salzer Electronics vs. Bajaj Holdings Investment | Salzer Electronics vs. Vardhman Holdings Limited |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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