Correlation Between Offshore Oil and Kunwu Jiuding
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By analyzing existing cross correlation between Offshore Oil Engineering and Kunwu Jiuding Investment, you can compare the effects of market volatilities on Offshore Oil and Kunwu Jiuding 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 Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Offshore Oil and Kunwu Jiuding.
Diversification Opportunities for Offshore Oil and Kunwu Jiuding
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Offshore and Kunwu is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Offshore Oil Engineering and Kunwu Jiuding Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunwu Jiuding Investment 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 Kunwu Jiuding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunwu Jiuding Investment has no effect on the direction of Offshore Oil i.e., Offshore Oil and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between Offshore Oil and Kunwu Jiuding
Assuming the 90 days trading horizon Offshore Oil Engineering is expected to generate 0.35 times more return on investment than Kunwu Jiuding. However, Offshore Oil Engineering is 2.9 times less risky than Kunwu Jiuding. It trades about -0.1 of its potential returns per unit of risk. Kunwu Jiuding Investment is currently generating about -0.13 per unit of risk. If you would invest 552.00 in Offshore Oil Engineering on October 28, 2024 and sell it today you would lose (17.00) from holding Offshore Oil Engineering or give up 3.08% 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. Kunwu Jiuding Investment
Performance |
| Timeline |
| Offshore Oil Engineering |
| Kunwu Jiuding Investment |
Offshore Oil and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Offshore Oil and Kunwu Jiuding
The main advantage of trading using opposite Offshore Oil and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Offshore Oil position performs unexpectedly, Kunwu Jiuding 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 Kunwu Jiuding will offset losses from the drop in Kunwu Jiuding's long position.| Offshore Oil vs. Thinkingdom Media Group | Offshore Oil vs. Omnijoi Media Corp | Offshore Oil vs. Sichuan Newsnet Media | Offshore Oil vs. Muyuan Foodstuff Co |
| Kunwu Jiuding vs. Industrial and Commercial | Kunwu Jiuding vs. Agricultural Bank of | Kunwu Jiuding vs. China Construction Bank | Kunwu Jiuding vs. Bank of China |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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