Correlation Between Sixty Six and Indo Global
Can any of the company-specific risk be diversified away by investing in both Sixty Six and Indo Global 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 Sixty Six and Indo Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sixty Six Oilfield and Indo Global Exchange, you can compare the effects of market volatilities on Sixty Six and Indo Global 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 Sixty Six with a short position of Indo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixty Six and Indo Global.
Diversification Opportunities for Sixty Six and Indo Global
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sixty and Indo is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Sixty Six Oilfield and Indo Global Exchange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indo Global Exchange and Sixty Six 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 Sixty Six Oilfield are associated (or correlated) with Indo Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indo Global Exchange has no effect on the direction of Sixty Six i.e., Sixty Six and Indo Global go up and down completely randomly.
Pair Corralation between Sixty Six and Indo Global
Given the investment horizon of 90 days Sixty Six Oilfield is expected to under-perform the Indo Global. In addition to that, Sixty Six is 1.36 times more volatile than Indo Global Exchange. It trades about -0.21 of its total potential returns per unit of risk. Indo Global Exchange is currently generating about 0.23 per unit of volatility. If you would invest 0.05 in Indo Global Exchange on August 31, 2024 and sell it today you would earn a total of 0.02 from holding Indo Global Exchange or generate 40.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixty Six Oilfield vs. Indo Global Exchange
Performance |
| Timeline |
| Sixty Six Oilfield |
| Indo Global Exchange |
Sixty Six and Indo Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixty Six and Indo Global
The main advantage of trading using opposite Sixty Six and Indo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixty Six position performs unexpectedly, Indo Global 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 Indo Global will offset losses from the drop in Indo Global's long position.| Sixty Six vs. Expro Group Holdings | Sixty Six vs. ChampionX | Sixty Six vs. Ranger Energy Services | Sixty Six vs. Cactus Inc |
| Indo Global vs. Holloman Energy Corp | Indo Global vs. cbdMD Inc | Indo Global vs. Evolus Inc | Indo Global vs. CV Sciences |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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