Correlation Between Offshore Oil and YiDong Electronics
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By analyzing existing cross correlation between Offshore Oil Engineering and YiDong Electronics Technology, you can compare the effects of market volatilities on Offshore Oil and YiDong Electronics 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 YiDong Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Offshore Oil and YiDong Electronics.
Diversification Opportunities for Offshore Oil and YiDong Electronics
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Offshore and YiDong is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Offshore Oil Engineering and YiDong Electronics Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YiDong Electronics 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 YiDong Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YiDong Electronics has no effect on the direction of Offshore Oil i.e., Offshore Oil and YiDong Electronics go up and down completely randomly.
Pair Corralation between Offshore Oil and YiDong Electronics
Assuming the 90 days trading horizon Offshore Oil is expected to generate 20.04 times less return on investment than YiDong Electronics. But when comparing it to its historical volatility, Offshore Oil Engineering is 3.5 times less risky than YiDong Electronics. It trades about 0.03 of its potential returns per unit of risk. YiDong Electronics Technology is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,959 in YiDong Electronics Technology on October 18, 2024 and sell it today you would earn a total of 255.00 from holding YiDong Electronics Technology or generate 13.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Offshore Oil Engineering vs. YiDong Electronics Technology
Performance |
| Timeline |
| Offshore Oil Engineering |
| YiDong Electronics |
Offshore Oil and YiDong Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Offshore Oil and YiDong Electronics
The main advantage of trading using opposite Offshore Oil and YiDong Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Offshore Oil position performs unexpectedly, YiDong Electronics 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 YiDong Electronics will offset losses from the drop in YiDong Electronics' long position.| Offshore Oil vs. Kidswant Children Products | Offshore Oil vs. Sportsoul Co Ltd | Offshore Oil vs. Peoples Insurance of | Offshore Oil vs. Agricultural Bank of |
| YiDong Electronics vs. Wuhan Yangtze Communication | YiDong Electronics vs. Offshore Oil Engineering | YiDong Electronics vs. Eastern Communications Co | YiDong Electronics vs. Jonjee Hi tech Industrial |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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