Correlation Between OCCIDENTAL and 00108WAF7
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By analyzing existing cross correlation between OCCIDENTAL PETE P and AEP TEX INC, you can compare the effects of market volatilities on OCCIDENTAL and 00108WAF7 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 OCCIDENTAL with a short position of 00108WAF7. Check out your portfolio center. Please also check ongoing floating volatility patterns of OCCIDENTAL and 00108WAF7.
Diversification Opportunities for OCCIDENTAL and 00108WAF7
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between OCCIDENTAL and 00108WAF7 is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding OCCIDENTAL PETE P and AEP TEX INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEP TEX INC and OCCIDENTAL 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 OCCIDENTAL PETE P are associated (or correlated) with 00108WAF7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEP TEX INC has no effect on the direction of OCCIDENTAL i.e., OCCIDENTAL and 00108WAF7 go up and down completely randomly.
Pair Corralation between OCCIDENTAL and 00108WAF7
Assuming the 90 days trading horizon OCCIDENTAL PETE P is expected to generate 0.75 times more return on investment than 00108WAF7. However, OCCIDENTAL PETE P is 1.33 times less risky than 00108WAF7. It trades about 0.05 of its potential returns per unit of risk. AEP TEX INC is currently generating about -0.04 per unit of risk. If you would invest 7,683 in OCCIDENTAL PETE P on September 1, 2024 and sell it today you would earn a total of 221.00 from holding OCCIDENTAL PETE P or generate 2.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 66.67% |
| Values | Daily Returns |
OCCIDENTAL PETE P vs. AEP TEX INC
Performance |
| Timeline |
| OCCIDENTAL PETE P |
| AEP TEX INC |
OCCIDENTAL and 00108WAF7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OCCIDENTAL and 00108WAF7
The main advantage of trading using opposite OCCIDENTAL and 00108WAF7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OCCIDENTAL position performs unexpectedly, 00108WAF7 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 00108WAF7 will offset losses from the drop in 00108WAF7's long position.| OCCIDENTAL vs. VirnetX Holding Corp | OCCIDENTAL vs. Software Acquisition Group | OCCIDENTAL vs. Global E Online | OCCIDENTAL vs. Qualys Inc |
| 00108WAF7 vs. AKITA Drilling | 00108WAF7 vs. GameStop Corp | 00108WAF7 vs. Contagious Gaming | 00108WAF7 vs. Awilco Drilling PLC |
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 Positions Ratings module to 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.
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