Correlation Between Offshore Oil and Industrial
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By analyzing existing cross correlation between Offshore Oil Engineering and Industrial and Commercial, you can compare the effects of market volatilities on Offshore Oil and Industrial 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Offshore Oil and Industrial.
Diversification Opportunities for Offshore Oil and Industrial
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Offshore and Industrial is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Offshore Oil Engineering and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Offshore Oil i.e., Offshore Oil and Industrial go up and down completely randomly.
Pair Corralation between Offshore Oil and Industrial
Assuming the 90 days trading horizon Offshore Oil is expected to generate 19.16 times less return on investment than Industrial. In addition to that, Offshore Oil is 1.15 times more volatile than Industrial and Commercial. It trades about 0.01 of its total potential returns per unit of risk. Industrial and Commercial is currently generating about 0.15 per unit of volatility. If you would invest 661.00 in Industrial and Commercial on November 5, 2024 and sell it today you would earn a total of 21.00 from holding Industrial and Commercial or generate 3.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Offshore Oil Engineering vs. Industrial and Commercial
Performance |
| Timeline |
| Offshore Oil Engineering |
| Industrial and Commercial |
Offshore Oil and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Offshore Oil and Industrial
The main advantage of trading using opposite Offshore Oil and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Offshore Oil position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial's long position.| Offshore Oil vs. Xinjiang Baodi Mining | Offshore Oil vs. Zhejiang Yongjin Metal | Offshore Oil vs. Shenyang Huitian Thermal | Offshore Oil vs. Simei Media Co |
| Industrial vs. V V Food | Industrial vs. Youyou Foods Co | Industrial vs. Dazhong Transportation Group | Industrial vs. Anji Foodstuff Co |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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