Correlation Between Anhui Tongguan and Offshore Oil
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By analyzing existing cross correlation between Anhui Tongguan Copper and Offshore Oil Engineering, you can compare the effects of market volatilities on Anhui Tongguan 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 Anhui Tongguan with a short position of Offshore Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Tongguan and Offshore Oil.
Diversification Opportunities for Anhui Tongguan and Offshore Oil
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Offshore is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Tongguan Copper 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 Anhui Tongguan 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 Anhui Tongguan Copper 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 Anhui Tongguan i.e., Anhui Tongguan and Offshore Oil go up and down completely randomly.
Pair Corralation between Anhui Tongguan and Offshore Oil
Assuming the 90 days trading horizon Anhui Tongguan Copper is expected to under-perform the Offshore Oil. In addition to that, Anhui Tongguan is 2.46 times more volatile than Offshore Oil Engineering. It trades about -0.12 of its total potential returns per unit of risk. Offshore Oil Engineering is currently generating about -0.13 per unit of volatility. If you would invest 556.00 in Offshore Oil Engineering on October 29, 2024 and sell it today you would lose (21.00) from holding Offshore Oil Engineering or give up 3.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Anhui Tongguan Copper vs. Offshore Oil Engineering
Performance |
| Timeline |
| Anhui Tongguan Copper |
| Offshore Oil Engineering |
Anhui Tongguan and Offshore Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Tongguan and Offshore Oil
The main advantage of trading using opposite Anhui Tongguan and Offshore Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Tongguan 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.| Anhui Tongguan vs. Cloud Live Technology | Anhui Tongguan vs. Nanjing Putian Telecommunications | Anhui Tongguan vs. Shenzhen Coship Electronics | Anhui Tongguan vs. Shenzhen Hifuture Electric |
| Offshore Oil vs. Beijing YanDong MicroElectronic | Offshore Oil vs. LianChuang Electronic Technology | Offshore Oil vs. Uroica Mining Safety | Offshore Oil vs. Anhui Tongguan Copper |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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