Correlation Between Oriental Petroleum and Oriental Petroleum

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

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

Diversification Opportunities for Oriental Petroleum and Oriental Petroleum

0.78

Correlation Coefficient

Oriental Petroleum  Oriental Petroleum

Poor diversification

The 3 months correlation between Oriental and Oriental is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Petroleum and and Oriental Petroleum and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oriental Petroleum and and Oriental Petroleum 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 Oriental Petroleum and are associated (or correlated) with Oriental Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oriental Petroleum and has no effect on the direction of Oriental Petroleum i.e., Oriental Petroleum and Oriental Petroleum go up and down completely randomly.

Pair Corralation between Oriental Petroleum and Oriental Petroleum

Assuming the 90 days trading horizon Oriental Petroleum is expected to generate 1.14 times less return on investment than Oriental Petroleum. But when comparing it to its historical volatility, Oriental Petroleum and is 1.78 times less risky than Oriental Petroleum. It trades about 0.17 of its potential returns per unit of risk. Oriental Petroleum and is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  0.79  in Oriental Petroleum and on April 25, 2025 and sell it today you would earn a total of  0.11  from holding Oriental Petroleum and or generate 13.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	43.86%
Values	Daily Returns

Oriental Petroleum and  vs.  Oriental Petroleum and

Oriental Petroleum and

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Oriental Petroleum and are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Oriental Petroleum exhibited solid returns over the last few months and may actually be approaching a breakup point.

Oriental Petroleum and

Risk-Adjusted Performance

OK

Over the last 90 days Oriental Petroleum and has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively unsteady basic indicators, Oriental Petroleum unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Oriental Petroleum and Oriental Petroleum

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

The idea behind Oriental Petroleum and and Oriental Petroleum and 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.