Correlation Between Offshore Oil and Tianjin Hi
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By analyzing existing cross correlation between Offshore Oil Engineering and Tianjin Hi Tech Development, you can compare the effects of market volatilities on Offshore Oil and Tianjin Hi 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 Tianjin Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Offshore Oil and Tianjin Hi.
Diversification Opportunities for Offshore Oil and Tianjin Hi
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Offshore and Tianjin is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Offshore Oil Engineering and Tianjin Hi Tech Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Hi Tech 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 Tianjin Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Hi Tech has no effect on the direction of Offshore Oil i.e., Offshore Oil and Tianjin Hi go up and down completely randomly.
Pair Corralation between Offshore Oil and Tianjin Hi
Assuming the 90 days trading horizon Offshore Oil is expected to generate 7.98 times less return on investment than Tianjin Hi. But when comparing it to its historical volatility, Offshore Oil Engineering is 1.41 times less risky than Tianjin Hi. It trades about 0.0 of its potential returns per unit of risk. Tianjin Hi Tech Development is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 311.00 in Tianjin Hi Tech Development on September 12, 2024 and sell it today you would earn a total of 10.00 from holding Tianjin Hi Tech Development or generate 3.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Offshore Oil Engineering vs. Tianjin Hi Tech Development
Performance |
| Timeline |
| Offshore Oil Engineering |
| Tianjin Hi Tech |
Offshore Oil and Tianjin Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Offshore Oil and Tianjin Hi
The main advantage of trading using opposite Offshore Oil and Tianjin Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Offshore Oil position performs unexpectedly, Tianjin Hi 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 Tianjin Hi will offset losses from the drop in Tianjin Hi's long position.| Offshore Oil vs. Zhejiang Kingland Pipeline | Offshore Oil vs. Gansu Jiu Steel | Offshore Oil vs. Shandong Mining Machinery | Offshore Oil vs. Aba Chemicals Corp |
| Tianjin Hi vs. Gansu Jiu Steel | Tianjin Hi vs. Shandong Mining Machinery | Tianjin Hi vs. Aba Chemicals Corp | Tianjin Hi vs. BlueFocus Communication Group |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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