Correlation Between Cheetah Oil and Il2m International

Can any of the company-specific risk be diversified away by investing in both Cheetah Oil and Il2m International 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 Cheetah Oil and Il2m International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cheetah Oil Gas and Il2m International Corp, you can compare the effects of market volatilities on Cheetah Oil and Il2m International 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 Cheetah Oil with a short position of Il2m International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheetah Oil and Il2m International.

Diversification Opportunities for Cheetah Oil and Il2m International

-1.0

Correlation Coefficient

Cheetah Oil  Il2m International

Pay attention - limited upside

The 3 months correlation between Cheetah and Il2m is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding Cheetah Oil Gas and Il2m International Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Il2m International Corp and Cheetah 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 Cheetah Oil Gas are associated (or correlated) with Il2m International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Il2m International Corp has no effect on the direction of Cheetah Oil i.e., Cheetah Oil and Il2m International go up and down completely randomly.

Pair Corralation between Cheetah Oil and Il2m International

Given the investment horizon of 90 days Cheetah Oil Gas is expected to generate 3.0 times more return on investment than Il2m International. However, Cheetah Oil is 3.0 times more volatile than Il2m International Corp. It trades about 0.13 of its potential returns per unit of risk. Il2m International Corp is currently generating about -0.13 per unit of risk. If you would invest  0.01  in Cheetah Oil Gas on September 12, 2024 and sell it today you would earn a total of  0.01  from holding Cheetah Oil Gas or generate 100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Cheetah Oil Gas  vs.  Il2m International Corp

Cheetah Oil Gas

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cheetah Oil Gas are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical indicators, Cheetah Oil reported solid returns over the last few months and may actually be approaching a breakup point.

Il2m International Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Il2m International Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's forward indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Cheetah Oil and Il2m International

The main advantage of trading using opposite Cheetah Oil and Il2m International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheetah Oil position performs unexpectedly, Il2m International 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 Il2m International will offset losses from the drop in Il2m International's long position.

The idea behind Cheetah Oil Gas and Il2m International Corp 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..