Correlation Between CIMC Vehicles and Offshore Oil
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By analyzing existing cross correlation between CIMC Vehicles Co and Offshore Oil Engineering, you can compare the effects of market volatilities on CIMC Vehicles 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 CIMC Vehicles with a short position of Offshore Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIMC Vehicles and Offshore Oil.
Diversification Opportunities for CIMC Vehicles and Offshore Oil
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CIMC and Offshore is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding CIMC Vehicles Co 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 CIMC Vehicles 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 CIMC Vehicles Co 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 CIMC Vehicles i.e., CIMC Vehicles and Offshore Oil go up and down completely randomly.
Pair Corralation between CIMC Vehicles and Offshore Oil
Assuming the 90 days trading horizon CIMC Vehicles Co is expected to generate 1.21 times more return on investment than Offshore Oil. However, CIMC Vehicles is 1.21 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 -0.01 per unit of risk. If you would invest 1,006 in CIMC Vehicles Co on September 1, 2024 and sell it today you would lose (20.00) from holding CIMC Vehicles Co or give up 1.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CIMC Vehicles Co vs. Offshore Oil Engineering
Performance |
| Timeline |
| CIMC Vehicles |
| Offshore Oil Engineering |
CIMC Vehicles and Offshore Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIMC Vehicles and Offshore Oil
The main advantage of trading using opposite CIMC Vehicles and Offshore Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIMC Vehicles 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.| CIMC Vehicles vs. China World Trade | CIMC Vehicles vs. Guangdong Jingyi Metal | CIMC Vehicles vs. Rising Nonferrous Metals | CIMC Vehicles vs. Shandong Hongchuang Aluminum |
| Offshore Oil vs. Zhejiang Kingland Pipeline | Offshore Oil vs. ADAMA | Offshore Oil vs. Changchun Faway Automobile | Offshore Oil vs. Zhejiang Dahua Technology |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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