Correlation Between BeiGene and Offshore Oil
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By analyzing existing cross correlation between BeiGene and Offshore Oil Engineering, you can compare the effects of market volatilities on BeiGene and Offshore Oil 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 BeiGene with a short position of Offshore Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of BeiGene and Offshore Oil.
Diversification Opportunities for BeiGene and Offshore Oil
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BeiGene and Offshore is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding BeiGene and Offshore Oil Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Offshore Oil Engineering and BeiGene 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 BeiGene are associated (or correlated) with Offshore Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Offshore Oil Engineering has no effect on the direction of BeiGene i.e., BeiGene and Offshore Oil go up and down completely randomly.
Pair Corralation between BeiGene and Offshore Oil
Assuming the 90 days trading horizon BeiGene is expected to generate 1.22 times more return on investment than Offshore Oil. However, BeiGene is 1.22 times more volatile than Offshore Oil Engineering. It trades about 0.04 of its potential returns per unit of risk. Offshore Oil Engineering is currently generating about -0.01 per unit of risk. If you would invest 13,540 in BeiGene on September 25, 2024 and sell it today you would earn a total of 2,560 from holding BeiGene or generate 18.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
BeiGene vs. Offshore Oil Engineering
Performance |
Timeline |
BeiGene |
Offshore Oil Engineering |
BeiGene and Offshore Oil Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BeiGene and Offshore Oil
The main advantage of trading using opposite BeiGene and Offshore Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BeiGene position performs unexpectedly, Offshore Oil 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 Offshore Oil will offset losses from the drop in Offshore Oil's long position.BeiGene vs. Zhejiang Construction Investment | BeiGene vs. Metro Investment Development | BeiGene vs. Kunshan Guoli Electronic | BeiGene vs. Xinya Electronic Co |
Offshore Oil vs. Zhejiang Kingland Pipeline | Offshore Oil vs. BeiGene | Offshore Oil vs. Easyhome New Retail | Offshore Oil vs. ZTE Corp |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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