Correlation Between Cheetah Oil and Ozon Holdings

Can any of the company-specific risk be diversified away by investing in both Cheetah Oil and Ozon Holdings 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 Ozon Holdings 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 Ozon Holdings PLC, you can compare the effects of market volatilities on Cheetah Oil and Ozon Holdings 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 Ozon Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheetah Oil and Ozon Holdings.

Diversification Opportunities for Cheetah Oil and Ozon Holdings

1.0

Correlation Coefficient

Cheetah Oil  Ozon Holdings

No risk reduction

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

Pair Corralation between Cheetah Oil and Ozon Holdings

If you would invest  1,160  in Ozon Holdings PLC on September 3, 2024 and sell it today you would earn a total of  0.00  from holding Ozon Holdings PLC or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	2.38%
Values	Daily Returns

Cheetah Oil Gas  vs.  Ozon Holdings PLC

Cheetah Oil Gas

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cheetah Oil Gas has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, Cheetah Oil is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Ozon Holdings PLC

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Cheetah Oil and Ozon Holdings

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

The idea behind Cheetah Oil Gas and Ozon Holdings PLC 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.