Correlation Between Shanghai Broadband and Offshore Oil
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By analyzing existing cross correlation between Shanghai Broadband Technology and Offshore Oil Engineering, you can compare the effects of market volatilities on Shanghai Broadband and Offshore Oil 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 Shanghai Broadband with a short position of Offshore Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Broadband and Offshore Oil.
Diversification Opportunities for Shanghai Broadband and Offshore Oil
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shanghai and Offshore is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Broadband Technology and Offshore Oil Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Offshore Oil Engineering and Shanghai Broadband 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 Shanghai Broadband Technology are associated (or correlated) with Offshore Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Offshore Oil Engineering has no effect on the direction of Shanghai Broadband i.e., Shanghai Broadband and Offshore Oil go up and down completely randomly.
Pair Corralation between Shanghai Broadband and Offshore Oil
Assuming the 90 days trading horizon Shanghai Broadband Technology is expected to under-perform the Offshore Oil. In addition to that, Shanghai Broadband is 3.15 times more volatile than Offshore Oil Engineering. It trades about -0.31 of its total potential returns per unit of risk. Offshore Oil Engineering is currently generating about -0.01 per unit of volatility. If you would invest 548.00 in Offshore Oil Engineering on October 11, 2024 and sell it today you would lose (2.00) from holding Offshore Oil Engineering or give up 0.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Broadband Technology vs. Offshore Oil Engineering
Performance |
| Timeline |
| Shanghai Broadband |
| Offshore Oil Engineering |
Shanghai Broadband and Offshore Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Broadband and Offshore Oil
The main advantage of trading using opposite Shanghai Broadband and Offshore Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Broadband position performs unexpectedly, Offshore Oil 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 Offshore Oil will offset losses from the drop in Offshore Oil's long position.| Shanghai Broadband vs. Soyea Technology Co | Shanghai Broadband vs. Dazhong Transportation Group | Shanghai Broadband vs. Eastroc Beverage Group | Shanghai Broadband vs. Smartgiant Technology Co |
| Offshore Oil vs. Hubeiyichang Transportation Group | Offshore Oil vs. Zhengping RoadBridge Constr | Offshore Oil vs. Beijing Baolande Software | Offshore Oil vs. Sichuan Fulin Transportation |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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