Correlation Between Offshore Oil and HaiXin Foods
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By analyzing existing cross correlation between Offshore Oil Engineering and HaiXin Foods Co, you can compare the effects of market volatilities on Offshore Oil and HaiXin Foods 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 HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Offshore Oil and HaiXin Foods.
Diversification Opportunities for Offshore Oil and HaiXin Foods
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Offshore and HaiXin is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Offshore Oil Engineering and HaiXin Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HaiXin Foods 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 HaiXin Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HaiXin Foods has no effect on the direction of Offshore Oil i.e., Offshore Oil and HaiXin Foods go up and down completely randomly.
Pair Corralation between Offshore Oil and HaiXin Foods
Assuming the 90 days trading horizon Offshore Oil Engineering is expected to generate 0.17 times more return on investment than HaiXin Foods. However, Offshore Oil Engineering is 5.76 times less risky than HaiXin Foods. It trades about -0.04 of its potential returns per unit of risk. HaiXin Foods Co is currently generating about -0.07 per unit of risk. If you would invest 548.00 in Offshore Oil Engineering on October 10, 2024 and sell it today you would lose (6.00) from holding Offshore Oil Engineering or give up 1.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Offshore Oil Engineering vs. HaiXin Foods Co
Performance |
| Timeline |
| Offshore Oil Engineering |
| HaiXin Foods |
Offshore Oil and HaiXin Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Offshore Oil and HaiXin Foods
The main advantage of trading using opposite Offshore Oil and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Offshore Oil position performs unexpectedly, HaiXin Foods 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 HaiXin Foods will offset losses from the drop in HaiXin Foods' long position.| Offshore Oil vs. Yindu Kitchen Equipment | Offshore Oil vs. Harvest Fund Management | Offshore Oil vs. Cicc Fund Management | Offshore Oil vs. China Asset Management |
| HaiXin Foods vs. Tianshui Huatian Technology | HaiXin Foods vs. CSSC Offshore Marine | HaiXin Foods vs. Offshore Oil Engineering | HaiXin Foods vs. Ningbo MedicalSystem Biotechnology |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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