Correlation Between WT Offshore and 360 Finance
Can any of the company-specific risk be diversified away by investing in both WT Offshore and 360 Finance 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 WT Offshore and 360 Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WT Offshore and 360 Finance, you can compare the effects of market volatilities on WT Offshore and 360 Finance 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 WT Offshore with a short position of 360 Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of WT Offshore and 360 Finance.
Diversification Opportunities for WT Offshore and 360 Finance
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WTI and 360 is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding WT Offshore and 360 Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 360 Finance and WT Offshore 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 WT Offshore are associated (or correlated) with 360 Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 360 Finance has no effect on the direction of WT Offshore i.e., WT Offshore and 360 Finance go up and down completely randomly.
Pair Corralation between WT Offshore and 360 Finance
Considering the 90-day investment horizon WT Offshore is expected to under-perform the 360 Finance. In addition to that, WT Offshore is 1.06 times more volatile than 360 Finance. It trades about -0.06 of its total potential returns per unit of risk. 360 Finance is currently generating about 0.09 per unit of volatility. If you would invest 1,559 in 360 Finance on November 1, 2024 and sell it today you would earn a total of 2,660 from holding 360 Finance or generate 170.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WT Offshore vs. 360 Finance
Performance |
| Timeline |
| WT Offshore |
| 360 Finance |
WT Offshore and 360 Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WT Offshore and 360 Finance
The main advantage of trading using opposite WT Offshore and 360 Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WT Offshore position performs unexpectedly, 360 Finance 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 360 Finance will offset losses from the drop in 360 Finance's long position.| WT Offshore vs. Evolution Petroleum | WT Offshore vs. Ring Energy | WT Offshore vs. Gran Tierra Energy | WT Offshore vs. Permian Resources |
| 360 Finance vs. RBC Bearings Incorporated | 360 Finance vs. SBM Offshore NV | 360 Finance vs. WT Offshore | 360 Finance vs. Virgin Group Acquisition |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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