Correlation Between Offshore Oil and Zhongfu Information
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By analyzing existing cross correlation between Offshore Oil Engineering and Zhongfu Information, you can compare the effects of market volatilities on Offshore Oil and Zhongfu Information 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 Zhongfu Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Offshore Oil and Zhongfu Information.
Diversification Opportunities for Offshore Oil and Zhongfu Information
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Offshore and Zhongfu is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Offshore Oil Engineering and Zhongfu Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongfu 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 Zhongfu Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongfu Information has no effect on the direction of Offshore Oil i.e., Offshore Oil and Zhongfu Information go up and down completely randomly.
Pair Corralation between Offshore Oil and Zhongfu Information
Assuming the 90 days trading horizon Offshore Oil Engineering is expected to generate 0.34 times more return on investment than Zhongfu Information. However, Offshore Oil Engineering is 2.93 times less risky than Zhongfu Information. It trades about -0.15 of its potential returns per unit of risk. Zhongfu Information is currently generating about -0.31 per unit of risk. If you would invest 548.00 in Offshore Oil Engineering on October 15, 2024 and sell it today you would lose (20.00) from holding Offshore Oil Engineering or give up 3.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Offshore Oil Engineering vs. Zhongfu Information
Performance |
| Timeline |
| Offshore Oil Engineering |
| Zhongfu Information |
Offshore Oil and Zhongfu Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Offshore Oil and Zhongfu Information
The main advantage of trading using opposite Offshore Oil and Zhongfu Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Offshore Oil position performs unexpectedly, Zhongfu Information 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 Zhongfu Information will offset losses from the drop in Zhongfu Information's long position.| Offshore Oil vs. Ye Chiu Metal | Offshore Oil vs. Nanjing Putian Telecommunications | Offshore Oil vs. Beijing Bewinner Communications | Offshore Oil vs. Tongyu Communication |
| Zhongfu Information vs. Hygon Information Technology | Zhongfu Information vs. Dawning Information Industry | Zhongfu Information vs. Eastroc Beverage Group | Zhongfu Information vs. Offshore Oil Engineering |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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