Correlation Between REVO INSURANCE and China Oilfield
Can any of the company-specific risk be diversified away by investing in both REVO INSURANCE and China Oilfield 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 REVO INSURANCE and China Oilfield into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between REVO INSURANCE SPA and China Oilfield Services, you can compare the effects of market volatilities on REVO INSURANCE and China Oilfield 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 REVO INSURANCE with a short position of China Oilfield. Check out your portfolio center. Please also check ongoing floating volatility patterns of REVO INSURANCE and China Oilfield.
Diversification Opportunities for REVO INSURANCE and China Oilfield
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between REVO and China is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding REVO INSURANCE SPA and China Oilfield Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Oilfield Services and REVO INSURANCE 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 REVO INSURANCE SPA are associated (or correlated) with China Oilfield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Oilfield Services has no effect on the direction of REVO INSURANCE i.e., REVO INSURANCE and China Oilfield go up and down completely randomly.
Pair Corralation between REVO INSURANCE and China Oilfield
Assuming the 90 days horizon REVO INSURANCE SPA is expected to generate 0.81 times more return on investment than China Oilfield. However, REVO INSURANCE SPA is 1.23 times less risky than China Oilfield. It trades about 0.29 of its potential returns per unit of risk. China Oilfield Services is currently generating about -0.15 per unit of risk. If you would invest 992.00 in REVO INSURANCE SPA on September 1, 2024 and sell it today you would earn a total of 88.00 from holding REVO INSURANCE SPA or generate 8.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
REVO INSURANCE SPA vs. China Oilfield Services
Performance |
| Timeline |
| REVO INSURANCE SPA |
| China Oilfield Services |
REVO INSURANCE and China Oilfield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REVO INSURANCE and China Oilfield
The main advantage of trading using opposite REVO INSURANCE and China Oilfield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REVO INSURANCE position performs unexpectedly, China Oilfield 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 China Oilfield will offset losses from the drop in China Oilfield's long position.| REVO INSURANCE vs. The Travelers Companies | REVO INSURANCE vs. Allianz SE | REVO INSURANCE vs. Onxeo SA | REVO INSURANCE vs. Blue Sky Uranium |
| China Oilfield vs. PT Bank Maybank | China Oilfield vs. Choice Hotels International | China Oilfield vs. Commonwealth Bank of | China Oilfield vs. Mizuho Financial Group |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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