Correlation Between Tianjin Hi and Offshore Oil
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By analyzing existing cross correlation between Tianjin Hi Tech Development and Offshore Oil Engineering, you can compare the effects of market volatilities on Tianjin Hi 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 Tianjin Hi with a short position of Offshore Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Hi and Offshore Oil.
Diversification Opportunities for Tianjin Hi and Offshore Oil
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tianjin and Offshore is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Hi Tech Development 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 Tianjin Hi 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 Tianjin Hi Tech Development 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 Tianjin Hi i.e., Tianjin Hi and Offshore Oil go up and down completely randomly.
Pair Corralation between Tianjin Hi and Offshore Oil
Assuming the 90 days trading horizon Tianjin Hi Tech Development is expected to generate 2.24 times more return on investment than Offshore Oil. However, Tianjin Hi is 2.24 times more volatile than Offshore Oil Engineering. It trades about 0.25 of its potential returns per unit of risk. Offshore Oil Engineering is currently generating about -0.11 per unit of risk. If you would invest 276.00 in Tianjin Hi Tech Development on September 4, 2024 and sell it today you would earn a total of 47.00 from holding Tianjin Hi Tech Development or generate 17.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Hi Tech Development vs. Offshore Oil Engineering
Performance |
| Timeline |
| Tianjin Hi Tech |
| Offshore Oil Engineering |
Tianjin Hi and Offshore Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Hi and Offshore Oil
The main advantage of trading using opposite Tianjin Hi and Offshore Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Hi 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.| Tianjin Hi vs. PetroChina Co Ltd | Tianjin Hi vs. China Mobile Limited | Tianjin Hi vs. CNOOC Limited | Tianjin Hi vs. Ping An Insurance |
| Offshore Oil vs. Zhejiang Kingland Pipeline | Offshore Oil vs. Zhejiang HISUN Biomaterials | Offshore Oil vs. Kingsignal Technology Co | 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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