Correlation Between China Clean and SBM Offshore
Can any of the company-specific risk be diversified away by investing in both China Clean and SBM Offshore at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining China Clean and SBM Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Clean Energy and SBM Offshore NV, you can compare the effects of market volatilities on China Clean and SBM Offshore 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 China Clean with a short position of SBM Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Clean and SBM Offshore.
Diversification Opportunities for China Clean and SBM Offshore
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and SBM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Clean Energy and SBM Offshore NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBM Offshore NV and China Clean 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 China Clean Energy are associated (or correlated) with SBM Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBM Offshore NV has no effect on the direction of China Clean i.e., China Clean and SBM Offshore go up and down completely randomly.
Pair Corralation between China Clean and SBM Offshore
If you would invest 1,399 in SBM Offshore NV on September 12, 2024 and sell it today you would earn a total of 291.00 from holding SBM Offshore NV or generate 20.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 60.91% |
| Values | Daily Returns |
China Clean Energy vs. SBM Offshore NV
Performance |
| Timeline |
| China Clean Energy |
| SBM Offshore NV |
China Clean and SBM Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Clean and SBM Offshore
The main advantage of trading using opposite China Clean and SBM Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Clean position performs unexpectedly, SBM Offshore 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 SBM Offshore will offset losses from the drop in SBM Offshore's long position.| China Clean vs. Afya | China Clean vs. Amkor Technology | China Clean vs. Delek Logistics Partners | China Clean vs. 51Talk Online Education |
| SBM Offshore vs. Expro Group Holdings | SBM Offshore vs. ChampionX | SBM Offshore vs. Ranger Energy Services | SBM Offshore vs. Cactus Inc |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |