Correlation Between ChampionX and China Oilfield
Can any of the company-specific risk be diversified away by investing in both ChampionX 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 ChampionX and China Oilfield into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ChampionX and China Oilfield Services, you can compare the effects of market volatilities on ChampionX 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 ChampionX with a short position of China Oilfield. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChampionX and China Oilfield.
Diversification Opportunities for ChampionX and China Oilfield
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between ChampionX and China is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding ChampionX 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 ChampionX 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 ChampionX 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 ChampionX i.e., ChampionX and China Oilfield go up and down completely randomly.
Pair Corralation between ChampionX and China Oilfield
Assuming the 90 days horizon ChampionX is expected to under-perform the China Oilfield. In addition to that, ChampionX is 1.18 times more volatile than China Oilfield Services. It trades about -0.57 of its total potential returns per unit of risk. China Oilfield Services is currently generating about -0.18 per unit of volatility. If you would invest 84.00 in China Oilfield Services on September 25, 2024 and sell it today you would lose (4.00) from holding China Oilfield Services or give up 4.76% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
ChampionX vs. China Oilfield Services
Performance |
Timeline |
ChampionX |
China Oilfield Services |
ChampionX and China Oilfield Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ChampionX and China Oilfield
The main advantage of trading using opposite ChampionX and China Oilfield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChampionX 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.ChampionX vs. Schlumberger Limited | ChampionX vs. Halliburton | ChampionX vs. Halliburton | ChampionX vs. Baker Hughes Co |
China Oilfield vs. Schlumberger Limited | China Oilfield vs. Halliburton | China Oilfield vs. Halliburton | China Oilfield vs. Baker Hughes Co |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |