Correlation Between Applied Blockchain and Occidental
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By analyzing existing cross correlation between Applied Blockchain and Occidental Petroleum 43, you can compare the effects of market volatilities on Applied Blockchain and Occidental 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 Applied Blockchain with a short position of Occidental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Blockchain and Occidental.
Diversification Opportunities for Applied Blockchain and Occidental
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Applied and Occidental is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Applied Blockchain and Occidental Petroleum 43 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Occidental Petroleum and Applied Blockchain 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 Applied Blockchain are associated (or correlated) with Occidental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Occidental Petroleum has no effect on the direction of Applied Blockchain i.e., Applied Blockchain and Occidental go up and down completely randomly.
Pair Corralation between Applied Blockchain and Occidental
Given the investment horizon of 90 days Applied Blockchain is expected to generate 9.63 times less return on investment than Occidental. But when comparing it to its historical volatility, Applied Blockchain is 9.82 times less risky than Occidental. It trades about 0.07 of its potential returns per unit of risk. Occidental Petroleum 43 is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 8,081 in Occidental Petroleum 43 on September 12, 2024 and sell it today you would earn a total of 691.00 from holding Occidental Petroleum 43 or generate 8.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 61.62% |
| Values | Daily Returns |
Applied Blockchain vs. Occidental Petroleum 43
Performance |
| Timeline |
| Applied Blockchain |
| Occidental Petroleum |
Applied Blockchain and Occidental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Blockchain and Occidental
The main advantage of trading using opposite Applied Blockchain and Occidental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Blockchain position performs unexpectedly, Occidental 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 Occidental will offset losses from the drop in Occidental's long position.| Applied Blockchain vs. Magic Empire Global | Applied Blockchain vs. Zhong Yang Financial | Applied Blockchain vs. Netcapital | Applied Blockchain vs. Lazard |
| Occidental vs. AEP TEX INC | Occidental vs. US BANK NATIONAL | Occidental vs. Applied Blockchain | Occidental vs. BigBearai Holdings |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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