Correlation Between Chengtun Mining and Offshore Oil
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By analyzing existing cross correlation between Chengtun Mining Group and Offshore Oil Engineering, you can compare the effects of market volatilities on Chengtun Mining 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 Chengtun Mining with a short position of Offshore Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Offshore Oil.
Diversification Opportunities for Chengtun Mining and Offshore Oil
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengtun and Offshore is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group 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 Chengtun Mining 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 Chengtun Mining Group 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 Chengtun Mining i.e., Chengtun Mining and Offshore Oil go up and down completely randomly.
Pair Corralation between Chengtun Mining and Offshore Oil
Assuming the 90 days trading horizon Chengtun Mining Group is expected to under-perform the Offshore Oil. In addition to that, Chengtun Mining is 1.39 times more volatile than Offshore Oil Engineering. It trades about -0.1 of its total potential returns per unit of risk. Offshore Oil Engineering is currently generating about -0.03 per unit of volatility. If you would invest 546.00 in Offshore Oil Engineering on August 25, 2024 and sell it today you would lose (7.00) from holding Offshore Oil Engineering or give up 1.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. Offshore Oil Engineering
Performance |
| Timeline |
| Chengtun Mining Group |
| Offshore Oil Engineering |
Chengtun Mining and Offshore Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Offshore Oil
The main advantage of trading using opposite Chengtun Mining and Offshore Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining 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.| Chengtun Mining vs. Zijin Mining Group | Chengtun Mining vs. Wanhua Chemical Group | Chengtun Mining vs. Baoshan Iron Steel | Chengtun Mining vs. Shandong Gold Mining |
| Offshore Oil vs. Zhejiang Kingland Pipeline | Offshore Oil vs. Xiangyang Automobile Bearing | Offshore Oil vs. COL Digital Publishing | Offshore Oil vs. Suzhou Novoprotein Scientific |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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