Correlation Between Tengda Construction and Offshore Oil
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By analyzing existing cross correlation between Tengda Construction Group and Offshore Oil Engineering, you can compare the effects of market volatilities on Tengda Construction 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 Tengda Construction with a short position of Offshore Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tengda Construction and Offshore Oil.
Diversification Opportunities for Tengda Construction and Offshore Oil
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tengda and Offshore is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Tengda Construction Group 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 Tengda Construction 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 Tengda Construction Group 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 Tengda Construction i.e., Tengda Construction and Offshore Oil go up and down completely randomly.
Pair Corralation between Tengda Construction and Offshore Oil
Assuming the 90 days trading horizon Tengda Construction Group is expected to under-perform the Offshore Oil. But the stock apears to be less risky and, when comparing its historical volatility, Tengda Construction Group is 1.25 times less risky than Offshore Oil. The stock trades about 0.0 of its potential returns per unit of risk. The Offshore Oil Engineering is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 575.00 in Offshore Oil Engineering on September 4, 2024 and sell it today you would lose (32.00) from holding Offshore Oil Engineering or give up 5.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tengda Construction Group vs. Offshore Oil Engineering
Performance |
| Timeline |
| Tengda Construction |
| Offshore Oil Engineering |
Tengda Construction and Offshore Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tengda Construction and Offshore Oil
The main advantage of trading using opposite Tengda Construction and Offshore Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tengda Construction 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.| Tengda Construction vs. Zhejiang Kingland Pipeline | Tengda Construction vs. Longmaster Information Tech | Tengda Construction vs. Yonyou Auto Information | Tengda Construction vs. Keda Clean Energy |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
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