Correlation Between Tiger Oil and Indo Global

Can any of the company-specific risk be diversified away by investing in both Tiger Oil 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 Tiger Oil and Indo Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Tiger Oil And and Indo Global Exchange, you can compare the effects of market volatilities on Tiger Oil 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 Tiger Oil with a short position of Indo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiger Oil and Indo Global.

Diversification Opportunities for Tiger Oil and Indo Global

0.0

Correlation Coefficient

Tiger Oil  Indo Global

Pay attention - limited upside

The 3 months correlation between Tiger and Indo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tiger Oil And 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 Tiger Oil 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 Tiger Oil And 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 Tiger Oil i.e., Tiger Oil and Indo Global go up and down completely randomly.

Pair Corralation between Tiger Oil and Indo Global

If you would invest  0.05  in Indo Global Exchange on September 13, 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	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Tiger Oil And  vs.  Indo Global Exchange

Tiger Oil And

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tiger Oil And has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Tiger Oil is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Indo Global Exchange

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Indo Global Exchange are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical and fundamental indicators, Indo Global showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tiger Oil and Indo Global

The main advantage of trading using opposite Tiger Oil and Indo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiger Oil 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.

The idea behind Tiger Oil And and Indo Global Exchange pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.