Correlation Between Offshore Oil and Chengtun Mining
Specify exactly 2 symbols:
By analyzing existing cross correlation between Offshore Oil Engineering and Chengtun Mining Group, you can compare the effects of market volatilities on Offshore Oil and Chengtun Mining 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 Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Offshore Oil and Chengtun Mining.
Diversification Opportunities for Offshore Oil and Chengtun Mining
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Offshore and Chengtun is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Offshore Oil Engineering and Chengtun Mining Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengtun Mining Group 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 Chengtun Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengtun Mining Group has no effect on the direction of Offshore Oil i.e., Offshore Oil and Chengtun Mining go up and down completely randomly.
Pair Corralation between Offshore Oil and Chengtun Mining
Assuming the 90 days trading horizon Offshore Oil Engineering is expected to generate 0.68 times more return on investment than Chengtun Mining. However, Offshore Oil Engineering is 1.47 times less risky than Chengtun Mining. It trades about -0.13 of its potential returns per unit of risk. Chengtun Mining Group is currently generating about -0.16 per unit of risk. If you would invest 555.00 in Offshore Oil Engineering on August 29, 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. Chengtun Mining Group
Performance |
| Timeline |
| Offshore Oil Engineering |
| Chengtun Mining Group |
Offshore Oil and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Offshore Oil and Chengtun Mining
The main advantage of trading using opposite Offshore Oil and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Offshore Oil position performs unexpectedly, Chengtun Mining 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 Chengtun Mining will offset losses from the drop in Chengtun Mining's long position.| Offshore Oil vs. Heren Health Co | Offshore Oil vs. RoadMain T Co | Offshore Oil vs. Meinian Onehealth Healthcare | Offshore Oil vs. Dezhan HealthCare Co |
| Chengtun Mining vs. Tianshan Aluminum Group | Chengtun Mining vs. Dalian Zeus Entertainment | Chengtun Mining vs. Focus Media Information | Chengtun Mining vs. Lander Sports Development |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |