Correlation Between Terranet and Tethys Oil
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By analyzing existing cross correlation between Terranet AB and Tethys Oil AB, you can compare the effects of market volatilities on Terranet and Tethys Oil 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 Terranet with a short position of Tethys Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Terranet and Tethys Oil.
Diversification Opportunities for Terranet and Tethys Oil
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Terranet and Tethys is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Terranet AB and Tethys Oil AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tethys Oil AB and Terranet 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 Terranet AB are associated (or correlated) with Tethys Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tethys Oil AB has no effect on the direction of Terranet i.e., Terranet and Tethys Oil go up and down completely randomly.
Pair Corralation between Terranet and Tethys Oil
Assuming the 90 days trading horizon Terranet AB is expected to generate 23.78 times more return on investment than Tethys Oil. However, Terranet is 23.78 times more volatile than Tethys Oil AB. It trades about 0.0 of its potential returns per unit of risk. Tethys Oil AB is currently generating about 0.03 per unit of risk. If you would invest 17.00 in Terranet AB on August 27, 2024 and sell it today you would lose (1.00) from holding Terranet AB or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Terranet AB vs. Tethys Oil AB
Performance |
| Timeline |
| Terranet AB |
| Tethys Oil AB |
Terranet and Tethys Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Terranet and Tethys Oil
The main advantage of trading using opposite Terranet and Tethys Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Terranet position performs unexpectedly, Tethys Oil 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 Tethys Oil will offset losses from the drop in Tethys Oil's long position.| Terranet vs. Spectrumone publ AB | Terranet vs. Media and Games | Terranet vs. Mantex AB | Terranet vs. Sivers IMA Holding |
| Tethys Oil vs. Africa Oil Corp | Tethys Oil vs. International Petroleum | Tethys Oil vs. Maha Energy AB | Tethys Oil vs. Nobia AB |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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