Correlation Between Offshore Oil and Jiangsu Xinri
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By analyzing existing cross correlation between Offshore Oil Engineering and Jiangsu Xinri E Vehicle, you can compare the effects of market volatilities on Offshore Oil and Jiangsu Xinri 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 Jiangsu Xinri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Offshore Oil and Jiangsu Xinri.
Diversification Opportunities for Offshore Oil and Jiangsu Xinri
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Offshore and Jiangsu is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Offshore Oil Engineering and Jiangsu Xinri E Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinri E 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 Jiangsu Xinri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinri E has no effect on the direction of Offshore Oil i.e., Offshore Oil and Jiangsu Xinri go up and down completely randomly.
Pair Corralation between Offshore Oil and Jiangsu Xinri
Assuming the 90 days trading horizon Offshore Oil Engineering is expected to under-perform the Jiangsu Xinri. But the stock apears to be less risky and, when comparing its historical volatility, Offshore Oil Engineering is 1.63 times less risky than Jiangsu Xinri. The stock trades about -0.05 of its potential returns per unit of risk. The Jiangsu Xinri E Vehicle is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,055 in Jiangsu Xinri E Vehicle on September 1, 2024 and sell it today you would earn a total of 50.00 from holding Jiangsu Xinri E Vehicle or generate 4.74% 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. Jiangsu Xinri E Vehicle
Performance |
| Timeline |
| Offshore Oil Engineering |
| Jiangsu Xinri E |
Offshore Oil and Jiangsu Xinri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Offshore Oil and Jiangsu Xinri
The main advantage of trading using opposite Offshore Oil and Jiangsu Xinri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Offshore Oil position performs unexpectedly, Jiangsu Xinri 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 Jiangsu Xinri will offset losses from the drop in Jiangsu Xinri's long position.| Offshore Oil vs. Zhejiang Kingland Pipeline | Offshore Oil vs. ADAMA | Offshore Oil vs. Changchun Faway Automobile | Offshore Oil vs. Zhejiang Dahua Technology |
| Jiangsu Xinri vs. Dawning Information Industry | Jiangsu Xinri vs. Ye Chiu Metal | Jiangsu Xinri vs. State Grid InformationCommunication | Jiangsu Xinri vs. Offshore Oil Engineering |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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