Correlation Between SIL Investments and Indian Oil
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By analyzing existing cross correlation between SIL Investments Limited and Indian Oil, you can compare the effects of market volatilities on SIL Investments and Indian 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 SIL Investments with a short position of Indian Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIL Investments and Indian Oil.
Diversification Opportunities for SIL Investments and Indian Oil
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SIL and Indian is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding SIL Investments Limited and Indian Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indian Oil and SIL Investments 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 SIL Investments Limited are associated (or correlated) with Indian Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indian Oil has no effect on the direction of SIL Investments i.e., SIL Investments and Indian Oil go up and down completely randomly.
Pair Corralation between SIL Investments and Indian Oil
Assuming the 90 days trading horizon SIL Investments Limited is expected to generate 2.57 times more return on investment than Indian Oil. However, SIL Investments is 2.57 times more volatile than Indian Oil. It trades about 0.1 of its potential returns per unit of risk. Indian Oil is currently generating about -0.14 per unit of risk. If you would invest 55,835 in SIL Investments Limited on September 19, 2024 and sell it today you would earn a total of 13,620 from holding SIL Investments Limited or generate 24.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 98.39% |
Values | Daily Returns |
SIL Investments Limited vs. Indian Oil
Performance |
Timeline |
SIL Investments |
Indian Oil |
SIL Investments and Indian Oil Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SIL Investments and Indian Oil
The main advantage of trading using opposite SIL Investments and Indian Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIL Investments position performs unexpectedly, Indian 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 Indian Oil will offset losses from the drop in Indian Oil's long position.SIL Investments vs. MRF Limited | SIL Investments vs. JSW Holdings Limited | SIL Investments vs. Maharashtra Scooters Limited | SIL Investments vs. Nalwa Sons Investments |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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