Correlation Between China Asset and Offshore Oil
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By analyzing existing cross correlation between China Asset Management and Offshore Oil Engineering, you can compare the effects of market volatilities on China Asset 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 China Asset with a short position of Offshore Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and Offshore Oil.
Diversification Opportunities for China Asset and Offshore Oil
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Offshore is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management 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 China Asset 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 China Asset Management 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 China Asset i.e., China Asset and Offshore Oil go up and down completely randomly.
Pair Corralation between China Asset and Offshore Oil
Assuming the 90 days trading horizon China Asset Management is expected to generate 0.41 times more return on investment than Offshore Oil. However, China Asset Management is 2.44 times less risky than Offshore Oil. It trades about 0.09 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 264.00 in China Asset Management on October 11, 2024 and sell it today you would earn a total of 106.00 from holding China Asset Management or generate 40.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. Offshore Oil Engineering
Performance |
| Timeline |
| China Asset Management |
| Offshore Oil Engineering |
China Asset and Offshore Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and Offshore Oil
The main advantage of trading using opposite China Asset and Offshore Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset 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.| China Asset vs. Nanjing Vishee Medical | China Asset vs. Qingdao Haier Biomedical | China Asset vs. Zhongshan Public Utilities | China Asset vs. Time Publishing and |
| Offshore Oil vs. Zhejiang Kingland Pipeline | Offshore Oil vs. Ningbo Tech Bank Co | Offshore Oil vs. Shanghai Broadband Technology | 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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