Correlation Between Omnijoi Media and Xilong Chemical
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By analyzing existing cross correlation between Omnijoi Media Corp and Xilong Chemical Co, you can compare the effects of market volatilities on Omnijoi Media and Xilong Chemical 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 Omnijoi Media with a short position of Xilong Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omnijoi Media and Xilong Chemical.
Diversification Opportunities for Omnijoi Media and Xilong Chemical
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Omnijoi and Xilong is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Omnijoi Media Corp and Xilong Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xilong Chemical and Omnijoi Media 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 Omnijoi Media Corp are associated (or correlated) with Xilong Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xilong Chemical has no effect on the direction of Omnijoi Media i.e., Omnijoi Media and Xilong Chemical go up and down completely randomly.
Pair Corralation between Omnijoi Media and Xilong Chemical
Assuming the 90 days trading horizon Omnijoi Media Corp is expected to generate 1.25 times more return on investment than Xilong Chemical. However, Omnijoi Media is 1.25 times more volatile than Xilong Chemical Co. It trades about 0.03 of its potential returns per unit of risk. Xilong Chemical Co is currently generating about 0.02 per unit of risk. If you would invest 779.00 in Omnijoi Media Corp on November 2, 2024 and sell it today you would earn a total of 124.00 from holding Omnijoi Media Corp or generate 15.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Omnijoi Media Corp vs. Xilong Chemical Co
Performance |
| Timeline |
| Omnijoi Media Corp |
| Xilong Chemical |
Omnijoi Media and Xilong Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omnijoi Media and Xilong Chemical
The main advantage of trading using opposite Omnijoi Media and Xilong Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omnijoi Media position performs unexpectedly, Xilong Chemical 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 Xilong Chemical will offset losses from the drop in Xilong Chemical's long position.| Omnijoi Media vs. Beijing YanDong MicroElectronic | Omnijoi Media vs. Sportsoul Co Ltd | Omnijoi Media vs. Suzhou Douson Drilling | Omnijoi Media vs. Integrated Electronic Systems |
| Xilong Chemical vs. Zijin Mining Group | Xilong Chemical vs. Wanhua Chemical Group | Xilong Chemical vs. Baoshan Iron Steel | Xilong Chemical vs. Shandong Gold Mining |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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