Correlation Between Offshore Oil and CITIC Guoan
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By analyzing existing cross correlation between Offshore Oil Engineering and CITIC Guoan Information, you can compare the effects of market volatilities on Offshore Oil and CITIC Guoan 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 Offshore Oil with a short position of CITIC Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Offshore Oil and CITIC Guoan.
Diversification Opportunities for Offshore Oil and CITIC Guoan
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Offshore and CITIC is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Offshore Oil Engineering and CITIC Guoan Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Guoan Information and Offshore Oil 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 Offshore Oil Engineering are associated (or correlated) with CITIC Guoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Guoan Information has no effect on the direction of Offshore Oil i.e., Offshore Oil and CITIC Guoan go up and down completely randomly.
Pair Corralation between Offshore Oil and CITIC Guoan
Assuming the 90 days trading horizon Offshore Oil Engineering is expected to generate 0.54 times more return on investment than CITIC Guoan. However, Offshore Oil Engineering is 1.85 times less risky than CITIC Guoan. It trades about 0.08 of its potential returns per unit of risk. CITIC Guoan Information is currently generating about -0.21 per unit of risk. If you would invest 541.00 in Offshore Oil Engineering on October 23, 2024 and sell it today you would earn a total of 11.00 from holding Offshore Oil Engineering or generate 2.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Offshore Oil Engineering vs. CITIC Guoan Information
Performance |
| Timeline |
| Offshore Oil Engineering |
| CITIC Guoan Information |
Offshore Oil and CITIC Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Offshore Oil and CITIC Guoan
The main advantage of trading using opposite Offshore Oil and CITIC Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Offshore Oil position performs unexpectedly, CITIC Guoan 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 CITIC Guoan will offset losses from the drop in CITIC Guoan's long position.| Offshore Oil vs. Dymatic Chemicals | Offshore Oil vs. Hunan Mendale Hometextile | Offshore Oil vs. Ziel Home Furnishing | Offshore Oil vs. Nanxing Furniture Machinery |
| CITIC Guoan vs. Semiconductor Manufacturing Intl | CITIC Guoan vs. Qumei Furniture Group | CITIC Guoan vs. Hunan Mendale Hometextile | CITIC Guoan vs. Will Semiconductor Co |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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