Correlation Between Guangdong Shenglu and Offshore Oil
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Offshore Oil Engineering, you can compare the effects of market volatilities on Guangdong Shenglu and Offshore Oil 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 Guangdong Shenglu with a short position of Offshore Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Offshore Oil.
Diversification Opportunities for Guangdong Shenglu and Offshore Oil
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Offshore is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and Offshore Oil Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Offshore Oil Engineering and Guangdong Shenglu 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 Guangdong Shenglu Telecommunication are associated (or correlated) with Offshore Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Offshore Oil Engineering has no effect on the direction of Guangdong Shenglu i.e., Guangdong Shenglu and Offshore Oil go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Offshore Oil
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to under-perform the Offshore Oil. In addition to that, Guangdong Shenglu is 1.39 times more volatile than Offshore Oil Engineering. It trades about -0.01 of its total potential returns per unit of risk. Offshore Oil Engineering is currently generating about 0.0 per unit of volatility. If you would invest 574.00 in Offshore Oil Engineering on September 3, 2024 and sell it today you would lose (41.00) from holding Offshore Oil Engineering or give up 7.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Offshore Oil Engineering
Performance |
| Timeline |
| Guangdong Shenglu |
| Offshore Oil Engineering |
Guangdong Shenglu and Offshore Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Offshore Oil
The main advantage of trading using opposite Guangdong Shenglu and Offshore Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu position performs unexpectedly, Offshore Oil 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 Offshore Oil will offset losses from the drop in Offshore Oil's long position.| Guangdong Shenglu vs. Agricultural Bank of | Guangdong Shenglu vs. China Construction Bank | Guangdong Shenglu vs. Postal Savings Bank | Guangdong Shenglu vs. Bank of Communications |
| Offshore Oil vs. Jiangxi Hengda Hi Tech | Offshore Oil vs. Guangdong Shenglu Telecommunication | Offshore Oil vs. Shanghai Metersbonwe FashionAccessories | Offshore Oil vs. FSPG Hi Tech Co |
Check out your portfolio center.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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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