Correlation Between Tiger Oil and Hakuhodo

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

Diversification Opportunities for Tiger Oil and Hakuhodo

0.0

Correlation Coefficient

Tiger Oil  Hakuhodo

Pay attention - limited upside

The 3 months correlation between Tiger and Hakuhodo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tiger Oil And and Hakuhodo DY Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hakuhodo DY Holdings 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 Hakuhodo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hakuhodo DY Holdings has no effect on the direction of Tiger Oil i.e., Tiger Oil and Hakuhodo go up and down completely randomly.

Pair Corralation between Tiger Oil and Hakuhodo

Given the investment horizon of 90 days Tiger Oil And is expected to generate 71.64 times more return on investment than Hakuhodo. However, Tiger Oil is 71.64 times more volatile than Hakuhodo DY Holdings. It trades about 0.17 of its potential returns per unit of risk. Hakuhodo DY Holdings is currently generating about -0.01 per unit of risk. If you would invest  0.02  in Tiger Oil And on January 24, 2024 and sell it today you would lose (0.01) from holding Tiger Oil And or give up 50.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Tiger Oil And  vs.  Hakuhodo DY Holdings

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.

Hakuhodo DY Holdings

Risk-Adjusted Performance

8 of 100

OK

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

Pair Trading with Tiger Oil and Hakuhodo

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

The idea behind Tiger Oil And and Hakuhodo DY Holdings 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.