Correlation Between Offshore Oil and CIMC Vehicles
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By analyzing existing cross correlation between Offshore Oil Engineering and CIMC Vehicles Co, you can compare the effects of market volatilities on Offshore Oil and CIMC Vehicles 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 CIMC Vehicles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Offshore Oil and CIMC Vehicles.
Diversification Opportunities for Offshore Oil and CIMC Vehicles
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Offshore and CIMC is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Offshore Oil Engineering and CIMC Vehicles Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMC Vehicles 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 CIMC Vehicles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIMC Vehicles has no effect on the direction of Offshore Oil i.e., Offshore Oil and CIMC Vehicles go up and down completely randomly.
Pair Corralation between Offshore Oil and CIMC Vehicles
Assuming the 90 days trading horizon Offshore Oil Engineering is expected to under-perform the CIMC Vehicles. But the stock apears to be less risky and, when comparing its historical volatility, Offshore Oil Engineering is 1.6 times less risky than CIMC Vehicles. The stock trades about -0.64 of its potential returns per unit of risk. The CIMC Vehicles Co is currently generating about -0.39 of returns per unit of risk over similar time horizon. If you would invest 923.00 in CIMC Vehicles Co on November 27, 2024 and sell it today you would lose (58.00) from holding CIMC Vehicles Co or give up 6.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Offshore Oil Engineering vs. CIMC Vehicles Co
Performance |
| Timeline |
| Offshore Oil Engineering |
| CIMC Vehicles |
Offshore Oil and CIMC Vehicles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Offshore Oil and CIMC Vehicles
The main advantage of trading using opposite Offshore Oil and CIMC Vehicles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Offshore Oil position performs unexpectedly, CIMC Vehicles 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 CIMC Vehicles will offset losses from the drop in CIMC Vehicles' long position.| Offshore Oil vs. Anhui Huaheng Biotechnology | Offshore Oil vs. Ligao Foods CoLtd | Offshore Oil vs. Fujian Wanchen Biotechnology | Offshore Oil vs. Jinhe Biotechnology Co |
| CIMC Vehicles vs. StarPower Semiconductor | CIMC Vehicles vs. Yuanjie Semiconductor Technology | CIMC Vehicles vs. Xiangyang Automobile Bearing | CIMC Vehicles vs. Hubei Tech Semiconductors |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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