Correlation Between Offshore Oil and JCHX Mining
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By analyzing existing cross correlation between Offshore Oil Engineering and JCHX Mining Management, you can compare the effects of market volatilities on Offshore Oil and JCHX 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 JCHX Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Offshore Oil and JCHX Mining.
Diversification Opportunities for Offshore Oil and JCHX Mining
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Offshore and JCHX is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Offshore Oil Engineering and JCHX Mining Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JCHX Mining Management 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 JCHX Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JCHX Mining Management has no effect on the direction of Offshore Oil i.e., Offshore Oil and JCHX Mining go up and down completely randomly.
Pair Corralation between Offshore Oil and JCHX Mining
Assuming the 90 days trading horizon Offshore Oil is expected to generate 1.55 times less return on investment than JCHX Mining. But when comparing it to its historical volatility, Offshore Oil Engineering is 1.52 times less risky than JCHX Mining. It trades about 0.02 of its potential returns per unit of risk. JCHX Mining Management is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 3,915 in JCHX Mining Management on September 3, 2024 and sell it today you would lose (7.00) from holding JCHX Mining Management or give up 0.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Offshore Oil Engineering vs. JCHX Mining Management
Performance |
| Timeline |
| Offshore Oil Engineering |
| JCHX Mining Management |
Offshore Oil and JCHX Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Offshore Oil and JCHX Mining
The main advantage of trading using opposite Offshore Oil and JCHX Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Offshore Oil position performs unexpectedly, JCHX 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 JCHX Mining will offset losses from the drop in JCHX Mining's long position.| Offshore Oil vs. Jiangxi Hengda Hi Tech | Offshore Oil vs. Guangdong Shenglu Telecommunication | Offshore Oil vs. Shanghai Metersbonwe FashionAccessories | Offshore Oil vs. FSPG Hi Tech Co |
| JCHX Mining vs. Offshore Oil Engineering | JCHX Mining vs. Innovative Medical Management | JCHX Mining vs. Harvest Fund Management | JCHX Mining vs. Wuhan Hvsen Biotechnology |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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