Correlation Between Jiangxi Naipu and Offshore Oil
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangxi Naipu Mining and Offshore Oil Engineering, you can compare the effects of market volatilities on Jiangxi Naipu 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 Naipu with a short position of Offshore Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Naipu and Offshore Oil.
Diversification Opportunities for Jiangxi Naipu and Offshore Oil
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangxi and Offshore is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Naipu Mining 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 Naipu 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 Naipu Mining 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 Naipu i.e., Jiangxi Naipu and Offshore Oil go up and down completely randomly.
Pair Corralation between Jiangxi Naipu and Offshore Oil
Assuming the 90 days trading horizon Jiangxi Naipu Mining is expected to under-perform the Offshore Oil. In addition to that, Jiangxi Naipu is 1.39 times more volatile than Offshore Oil Engineering. It trades about -0.03 of its total potential returns per unit of risk. Offshore Oil Engineering is currently generating about 0.18 per unit of volatility. If you would invest 528.00 in Offshore Oil Engineering on September 29, 2024 and sell it today you would earn a total of 24.00 from holding Offshore Oil Engineering or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Naipu Mining vs. Offshore Oil Engineering
Performance |
| Timeline |
| Jiangxi Naipu Mining |
| Offshore Oil Engineering |
Jiangxi Naipu and Offshore Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Naipu and Offshore Oil
The main advantage of trading using opposite Jiangxi Naipu and Offshore Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Naipu 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 Naipu vs. Xian International Medical | Jiangxi Naipu vs. Hubei Xingfa Chemicals | Jiangxi Naipu vs. Zhongzhu Medical Holdings | Jiangxi Naipu vs. Allmed Medical Products |
| Offshore Oil vs. Zhejiang Kingland Pipeline | Offshore Oil vs. BeiGene | Offshore Oil vs. Easyhome New Retail | Offshore Oil vs. ZTE Corp |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |