Correlation Between Sixty Six and Indo Global

Can any of the company-specific risk be diversified away by investing in both Sixty Six 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 Sixty Six and Indo Global 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 Indo Global Exchange, you can compare the effects of market volatilities on Sixty Six 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 Sixty Six with a short position of Indo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixty Six and Indo Global.

Diversification Opportunities for Sixty Six and Indo Global

0.0

Correlation Coefficient

Sixty Six  Indo Global

Pay attention - limited upside

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

Pair Corralation between Sixty Six and Indo Global

If you would invest  0.07  in Indo Global Exchange on December 27, 2024 and sell it today you would earn a total of  0.00  from holding Indo Global Exchange or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Sixty Six Oilfield  vs.  Indo Global Exchange

Sixty Six Oilfield

Risk-Adjusted Performance

Very Weak

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

Indo Global Exchange

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Indo Global Exchange are ranked lower than 2 (%) 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 Sixty Six and Indo Global

The main advantage of trading using opposite Sixty Six and Indo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixty Six 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 Sixty Six Oilfield 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..