Correlation Between Kingclean Electric and Offshore Oil
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By analyzing existing cross correlation between Kingclean Electric Co and Offshore Oil Engineering, you can compare the effects of market volatilities on Kingclean Electric 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 Kingclean Electric with a short position of Offshore Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingclean Electric and Offshore Oil.
Diversification Opportunities for Kingclean Electric and Offshore Oil
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kingclean and Offshore is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Kingclean Electric Co 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 Kingclean Electric 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 Kingclean Electric Co 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 Kingclean Electric i.e., Kingclean Electric and Offshore Oil go up and down completely randomly.
Pair Corralation between Kingclean Electric and Offshore Oil
Assuming the 90 days trading horizon Kingclean Electric Co is expected to under-perform the Offshore Oil. But the stock apears to be less risky and, when comparing its historical volatility, Kingclean Electric Co is 1.01 times less risky than Offshore Oil. The stock trades about -0.02 of its potential returns per unit of risk. The Offshore Oil Engineering is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 599.00 in Offshore Oil Engineering on August 29, 2024 and sell it today you would lose (67.00) from holding Offshore Oil Engineering or give up 11.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingclean Electric Co vs. Offshore Oil Engineering
Performance |
| Timeline |
| Kingclean Electric |
| Offshore Oil Engineering |
Kingclean Electric and Offshore Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingclean Electric and Offshore Oil
The main advantage of trading using opposite Kingclean Electric and Offshore Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingclean Electric 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.| Kingclean Electric vs. Kweichow Moutai Co | Kingclean Electric vs. NAURA Technology Group | Kingclean Electric vs. Zhejiang Orient Gene | Kingclean Electric vs. APT Medical |
| Offshore Oil vs. Heren Health Co | Offshore Oil vs. RoadMain T Co | Offshore Oil vs. Meinian Onehealth Healthcare | Offshore Oil vs. Dezhan HealthCare Co |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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