Correlation Between Offshore Oil and Harbin Hatou
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By analyzing existing cross correlation between Offshore Oil Engineering and Harbin Hatou Investment, you can compare the effects of market volatilities on Offshore Oil and Harbin Hatou 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 Harbin Hatou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Offshore Oil and Harbin Hatou.
Diversification Opportunities for Offshore Oil and Harbin Hatou
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Offshore and Harbin is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Offshore Oil Engineering and Harbin Hatou Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbin Hatou 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 Harbin Hatou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbin Hatou Investment has no effect on the direction of Offshore Oil i.e., Offshore Oil and Harbin Hatou go up and down completely randomly.
Pair Corralation between Offshore Oil and Harbin Hatou
Assuming the 90 days trading horizon Offshore Oil Engineering is expected to under-perform the Harbin Hatou. But the stock apears to be less risky and, when comparing its historical volatility, Offshore Oil Engineering is 1.29 times less risky than Harbin Hatou. The stock trades about -0.01 of its potential returns per unit of risk. The Harbin Hatou Investment is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 510.00 in Harbin Hatou Investment on October 25, 2024 and sell it today you would earn a total of 131.00 from holding Harbin Hatou Investment or generate 25.69% 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. Harbin Hatou Investment
Performance |
| Timeline |
| Offshore Oil Engineering |
| Harbin Hatou Investment |
Offshore Oil and Harbin Hatou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Offshore Oil and Harbin Hatou
The main advantage of trading using opposite Offshore Oil and Harbin Hatou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Offshore Oil position performs unexpectedly, Harbin Hatou 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 Harbin Hatou will offset losses from the drop in Harbin Hatou's long position.| Offshore Oil vs. Guangzhou Dongfang Hotel | Offshore Oil vs. TongFu Microelectronics Co | Offshore Oil vs. Ningbo Kangqiang Electronics | Offshore Oil vs. Jiangyin Jianghua Microelectronics |
| Harbin Hatou vs. Gansu Jiu Steel | Harbin Hatou vs. Ming Yang Smart | Harbin Hatou vs. Aba Chemicals Corp | Harbin Hatou vs. Loctek Ergonomic Technology |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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