Correlation Between Offshore Oil and Zhejiang Yongjin
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By analyzing existing cross correlation between Offshore Oil Engineering and Zhejiang Yongjin Metal, you can compare the effects of market volatilities on Offshore Oil and Zhejiang Yongjin 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 Zhejiang Yongjin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Offshore Oil and Zhejiang Yongjin.
Diversification Opportunities for Offshore Oil and Zhejiang Yongjin
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Offshore and Zhejiang is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Offshore Oil Engineering and Zhejiang Yongjin Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yongjin Metal 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 Zhejiang Yongjin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yongjin Metal has no effect on the direction of Offshore Oil i.e., Offshore Oil and Zhejiang Yongjin go up and down completely randomly.
Pair Corralation between Offshore Oil and Zhejiang Yongjin
Assuming the 90 days trading horizon Offshore Oil Engineering is expected to generate 0.85 times more return on investment than Zhejiang Yongjin. However, Offshore Oil Engineering is 1.17 times less risky than Zhejiang Yongjin. It trades about 0.08 of its potential returns per unit of risk. Zhejiang Yongjin Metal is currently generating about 0.02 per unit of risk. If you would invest 541.00 in Offshore Oil Engineering on October 23, 2024 and sell it today you would earn a total of 11.00 from holding Offshore Oil Engineering or generate 2.03% 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. Zhejiang Yongjin Metal
Performance |
| Timeline |
| Offshore Oil Engineering |
| Zhejiang Yongjin Metal |
Offshore Oil and Zhejiang Yongjin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Offshore Oil and Zhejiang Yongjin
The main advantage of trading using opposite Offshore Oil and Zhejiang Yongjin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Offshore Oil position performs unexpectedly, Zhejiang Yongjin 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 Zhejiang Yongjin will offset losses from the drop in Zhejiang Yongjin's long position.| Offshore Oil vs. Dymatic Chemicals | Offshore Oil vs. Hunan Mendale Hometextile | Offshore Oil vs. Ziel Home Furnishing | Offshore Oil vs. Nanxing Furniture Machinery |
| Zhejiang Yongjin vs. Bangyan Technology Co | Zhejiang Yongjin vs. Uxi Unicomp Technology | Zhejiang Yongjin vs. Shenzhen SDG Information | Zhejiang Yongjin vs. Invengo Information Technology |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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