Correlation Between Offshore Oil and Guangzhou Automobile
Specify exactly 2 symbols:
By analyzing existing cross correlation between Offshore Oil Engineering and Guangzhou Automobile Group, you can compare the effects of market volatilities on Offshore Oil and Guangzhou Automobile 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 Guangzhou Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Offshore Oil and Guangzhou Automobile.
Diversification Opportunities for Offshore Oil and Guangzhou Automobile
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Offshore and Guangzhou is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Offshore Oil Engineering and Guangzhou Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Automobile 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 Guangzhou Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Automobile has no effect on the direction of Offshore Oil i.e., Offshore Oil and Guangzhou Automobile go up and down completely randomly.
Pair Corralation between Offshore Oil and Guangzhou Automobile
Assuming the 90 days trading horizon Offshore Oil Engineering is expected to under-perform the Guangzhou Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Offshore Oil Engineering is 2.4 times less risky than Guangzhou Automobile. The stock trades about -0.64 of its potential returns per unit of risk. The Guangzhou Automobile Group is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 860.00 in Guangzhou Automobile Group on November 27, 2024 and sell it today you would earn a total of 35.00 from holding Guangzhou Automobile Group or generate 4.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Offshore Oil Engineering vs. Guangzhou Automobile Group
Performance |
| Timeline |
| Offshore Oil Engineering |
| Guangzhou Automobile |
Offshore Oil and Guangzhou Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Offshore Oil and Guangzhou Automobile
The main advantage of trading using opposite Offshore Oil and Guangzhou Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Offshore Oil position performs unexpectedly, Guangzhou Automobile 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 Guangzhou Automobile will offset losses from the drop in Guangzhou Automobile's long position.| Offshore Oil vs. Anhui Huaheng Biotechnology | Offshore Oil vs. Ligao Foods CoLtd | Offshore Oil vs. Fujian Wanchen Biotechnology | Offshore Oil vs. Jinhe Biotechnology Co |
| Guangzhou Automobile vs. Shanghai Yanpu Metal | Guangzhou Automobile vs. Sportsoul Co Ltd | Guangzhou Automobile vs. Chongqing Shunbo Aluminum | Guangzhou Automobile 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |