Correlation Between Sixty Six and Buyer Group

Can any of the company-specific risk be diversified away by investing in both Sixty Six and Buyer Group 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 Sixty Six and Buyer Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sixty Six Oilfield and Buyer Group International, you can compare the effects of market volatilities on Sixty Six and Buyer Group 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 Sixty Six with a short position of Buyer Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixty Six and Buyer Group.

Diversification Opportunities for Sixty Six and Buyer Group

0.11

Correlation Coefficient

Sixty Six  Buyer Group

Average diversification

The 3 months correlation between Sixty and Buyer is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Sixty Six Oilfield and Buyer Group International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Buyer Group International and Sixty Six 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 Sixty Six Oilfield are associated (or correlated) with Buyer Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Buyer Group International has no effect on the direction of Sixty Six i.e., Sixty Six and Buyer Group go up and down completely randomly.

Pair Corralation between Sixty Six and Buyer Group

If you would invest  0.01  in Sixty Six Oilfield on October 12, 2024 and sell it today you would earn a total of  0.00  from holding Sixty Six Oilfield or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Sixty Six Oilfield  vs.  Buyer Group International

Sixty Six Oilfield

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sixty Six Oilfield are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Sixty Six reported solid returns over the last few months and may actually be approaching a breakup point.

Buyer Group International

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Sixty Six and Buyer Group

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

The idea behind Sixty Six Oilfield and Buyer Group International 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.