Correlation Between Jiangxi Hengda and Offshore Oil
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By analyzing existing cross correlation between Jiangxi Hengda Hi Tech and Offshore Oil Engineering, you can compare the effects of market volatilities on Jiangxi Hengda 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 Jiangxi Hengda with a short position of Offshore Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Hengda and Offshore Oil.
Diversification Opportunities for Jiangxi Hengda and Offshore Oil
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangxi and Offshore is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Hengda Hi Tech 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 Jiangxi Hengda 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 Jiangxi Hengda Hi Tech 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 Jiangxi Hengda i.e., Jiangxi Hengda and Offshore Oil go up and down completely randomly.
Pair Corralation between Jiangxi Hengda and Offshore Oil
Assuming the 90 days trading horizon Jiangxi Hengda Hi Tech is expected to generate 1.61 times more return on investment than Offshore Oil. However, Jiangxi Hengda is 1.61 times more volatile than Offshore Oil Engineering. It trades about 0.01 of its potential returns per unit of risk. Offshore Oil Engineering is currently generating about 0.0 per unit of risk. If you would invest 622.00 in Jiangxi Hengda Hi Tech on September 4, 2024 and sell it today you would lose (29.00) from holding Jiangxi Hengda Hi Tech or give up 4.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Hengda Hi Tech vs. Offshore Oil Engineering
Performance |
| Timeline |
| Jiangxi Hengda Hi |
| Offshore Oil Engineering |
Jiangxi Hengda and Offshore Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Hengda and Offshore Oil
The main advantage of trading using opposite Jiangxi Hengda and Offshore Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Hengda 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.| Jiangxi Hengda vs. Dalian Zeus Entertainment | Jiangxi Hengda vs. Kingclean Electric Co | Jiangxi Hengda vs. Ningxia Younglight Chemicals | Jiangxi Hengda vs. Miracll Chemicals Co |
| Offshore Oil vs. Zhejiang Kingland Pipeline | Offshore Oil vs. Zhejiang HISUN Biomaterials | Offshore Oil vs. Kingsignal Technology Co | Offshore Oil vs. Ming Yang Smart |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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