Correlation Between Zhejiang HISUN and Offshore Oil
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By analyzing existing cross correlation between Zhejiang HISUN Biomaterials and Offshore Oil Engineering, you can compare the effects of market volatilities on Zhejiang HISUN 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 Zhejiang HISUN with a short position of Offshore Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang HISUN and Offshore Oil.
Diversification Opportunities for Zhejiang HISUN and Offshore Oil
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Offshore is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang HISUN Biomaterials 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 Zhejiang HISUN 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 Zhejiang HISUN Biomaterials 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 Zhejiang HISUN i.e., Zhejiang HISUN and Offshore Oil go up and down completely randomly.
Pair Corralation between Zhejiang HISUN and Offshore Oil
Assuming the 90 days trading horizon Zhejiang HISUN Biomaterials is expected to generate 1.5 times more return on investment than Offshore Oil. However, Zhejiang HISUN is 1.5 times more volatile than Offshore Oil Engineering. It trades about 0.14 of its potential returns per unit of risk. Offshore Oil Engineering is currently generating about -0.1 per unit of risk. If you would invest 1,011 in Zhejiang HISUN Biomaterials on September 4, 2024 and sell it today you would earn a total of 60.00 from holding Zhejiang HISUN Biomaterials or generate 5.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang HISUN Biomaterials vs. Offshore Oil Engineering
Performance |
| Timeline |
| Zhejiang HISUN Bioma |
| Offshore Oil Engineering |
Zhejiang HISUN and Offshore Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang HISUN and Offshore Oil
The main advantage of trading using opposite Zhejiang HISUN and Offshore Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang HISUN 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.| Zhejiang HISUN vs. Zijin Mining Group | Zhejiang HISUN vs. Wanhua Chemical Group | Zhejiang HISUN vs. Baoshan Iron Steel | Zhejiang HISUN vs. Shandong Gold Mining |
| Offshore Oil vs. Zhejiang Kingland Pipeline | Offshore Oil vs. Zhejiang HISUN Biomaterials | Offshore Oil vs. Kingsignal Technology Co | Offshore Oil vs. Ming Yang Smart |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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