Correlation Between Global E and OCCIDENTAL
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By analyzing existing cross correlation between Global E Online and OCCIDENTAL PETE P, you can compare the effects of market volatilities on Global E 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 Global E with a short position of OCCIDENTAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global E and OCCIDENTAL.
Diversification Opportunities for Global E and OCCIDENTAL
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and OCCIDENTAL is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Global E Online and OCCIDENTAL PETE P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OCCIDENTAL PETE P and Global E 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 Global E Online 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 PETE P has no effect on the direction of Global E i.e., Global E and OCCIDENTAL go up and down completely randomly.
Pair Corralation between Global E and OCCIDENTAL
Given the investment horizon of 90 days Global E Online is expected to generate 1.72 times more return on investment than OCCIDENTAL. However, Global E is 1.72 times more volatile than OCCIDENTAL PETE P. It trades about 0.13 of its potential returns per unit of risk. OCCIDENTAL PETE P is currently generating about 0.01 per unit of risk. If you would invest 3,278 in Global E Online on September 3, 2024 and sell it today you would earn a total of 1,950 from holding Global E Online or generate 59.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.15% |
| Values | Daily Returns |
Global E Online vs. OCCIDENTAL PETE P
Performance |
| Timeline |
| Global E Online |
| OCCIDENTAL PETE P |
Global E and OCCIDENTAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global E and OCCIDENTAL
The main advantage of trading using opposite Global E and OCCIDENTAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global E 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.| Global E vs. MercadoLibre | Global E vs. PDD Holdings | Global E vs. JD Inc Adr | Global E vs. Alibaba Group Holding |
| OCCIDENTAL vs. The Travelers Companies | OCCIDENTAL vs. GE Aerospace | OCCIDENTAL vs. Walmart | OCCIDENTAL vs. Pfizer 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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