Correlation Between Offshore Oil and Jinhui Mining
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By analyzing existing cross correlation between Offshore Oil Engineering and Jinhui Mining Co, you can compare the effects of market volatilities on Offshore Oil and Jinhui 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 Jinhui Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Offshore Oil and Jinhui Mining.
Diversification Opportunities for Offshore Oil and Jinhui Mining
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Offshore and Jinhui is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Offshore Oil Engineering and Jinhui Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Mining 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 Jinhui Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhui Mining has no effect on the direction of Offshore Oil i.e., Offshore Oil and Jinhui Mining go up and down completely randomly.
Pair Corralation between Offshore Oil and Jinhui Mining
Assuming the 90 days trading horizon Offshore Oil Engineering is expected to generate 0.7 times more return on investment than Jinhui Mining. However, Offshore Oil Engineering is 1.42 times less risky than Jinhui Mining. It trades about -0.13 of its potential returns per unit of risk. Jinhui Mining Co is currently generating about -0.11 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Offshore Oil Engineering vs. Jinhui Mining Co
Performance |
| Timeline |
| Offshore Oil Engineering |
| Jinhui Mining |
Offshore Oil and Jinhui Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Offshore Oil and Jinhui Mining
The main advantage of trading using opposite Offshore Oil and Jinhui Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Offshore Oil position performs unexpectedly, Jinhui 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 Jinhui Mining will offset losses from the drop in Jinhui 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 |
| Jinhui Mining vs. Panda Financial Holding | Jinhui Mining vs. Gome Telecom Equipment | Jinhui Mining vs. Guangdong Qunxing Toys | Jinhui Mining vs. China Everbright Bank |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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