Correlation Between Offshore Oil and Shanghai Pudong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Offshore Oil Engineering and Shanghai Pudong Development, you can compare the effects of market volatilities on Offshore Oil and Shanghai Pudong 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 Shanghai Pudong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Offshore Oil and Shanghai Pudong.
Diversification Opportunities for Offshore Oil and Shanghai Pudong
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Offshore and Shanghai is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Offshore Oil Engineering and Shanghai Pudong Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Pudong Deve 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 Shanghai Pudong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Pudong Deve has no effect on the direction of Offshore Oil i.e., Offshore Oil and Shanghai Pudong go up and down completely randomly.
Pair Corralation between Offshore Oil and Shanghai Pudong
Assuming the 90 days trading horizon Offshore Oil Engineering is expected to generate 0.97 times more return on investment than Shanghai Pudong. However, Offshore Oil Engineering is 1.04 times less risky than Shanghai Pudong. It trades about -0.13 of its potential returns per unit of risk. Shanghai Pudong Development is currently generating about -0.18 per unit of risk. If you would invest 555.00 in Offshore Oil Engineering on August 27, 2024 and sell it today you would lose (23.00) from holding Offshore Oil Engineering or give up 4.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Offshore Oil Engineering vs. Shanghai Pudong Development
Performance |
| Timeline |
| Offshore Oil Engineering |
| Shanghai Pudong Deve |
Offshore Oil and Shanghai Pudong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Offshore Oil and Shanghai Pudong
The main advantage of trading using opposite Offshore Oil and Shanghai Pudong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Offshore Oil position performs unexpectedly, Shanghai Pudong 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 Shanghai Pudong will offset losses from the drop in Shanghai Pudong's long position.| Offshore Oil vs. Zhejiang Kingland Pipeline | Offshore Oil vs. Xiangyang Automobile Bearing | Offshore Oil vs. COL Digital Publishing | Offshore Oil vs. Suzhou Novoprotein Scientific |
| Shanghai Pudong vs. CICT Mobile Communication | Shanghai Pudong vs. Guangzhou Zhujiang Brewery | Shanghai Pudong vs. State Grid InformationCommunication | Shanghai Pudong 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |