Correlation Between Yingde Greatchem and Offshore Oil
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By analyzing existing cross correlation between Yingde Greatchem Chemicals and Offshore Oil Engineering, you can compare the effects of market volatilities on Yingde Greatchem 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 Yingde Greatchem with a short position of Offshore Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yingde Greatchem and Offshore Oil.
Diversification Opportunities for Yingde Greatchem and Offshore Oil
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yingde and Offshore is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Yingde Greatchem Chemicals 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 Yingde Greatchem 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 Yingde Greatchem Chemicals 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 Yingde Greatchem i.e., Yingde Greatchem and Offshore Oil go up and down completely randomly.
Pair Corralation between Yingde Greatchem and Offshore Oil
Assuming the 90 days trading horizon Yingde Greatchem Chemicals is expected to generate 1.59 times more return on investment than Offshore Oil. However, Yingde Greatchem is 1.59 times more volatile than Offshore Oil Engineering. It trades about 0.04 of its potential returns per unit of risk. Offshore Oil Engineering is currently generating about 0.02 per unit of risk. If you would invest 2,558 in Yingde Greatchem Chemicals on September 13, 2024 and sell it today you would earn a total of 39.00 from holding Yingde Greatchem Chemicals or generate 1.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yingde Greatchem Chemicals vs. Offshore Oil Engineering
Performance |
| Timeline |
| Yingde Greatchem Che |
| Offshore Oil Engineering |
Yingde Greatchem and Offshore Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yingde Greatchem and Offshore Oil
The main advantage of trading using opposite Yingde Greatchem and Offshore Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yingde Greatchem 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.| Yingde Greatchem vs. Zijin Mining Group | Yingde Greatchem vs. Wanhua Chemical Group | Yingde Greatchem vs. Baoshan Iron Steel | Yingde Greatchem vs. Shandong Gold Mining |
| Offshore Oil vs. Zhejiang Kingland Pipeline | Offshore Oil vs. NAURA Technology Group | Offshore Oil vs. HOB Biotech Group | 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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