Correlation Between China Oilfield and Core Laboratories

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both China Oilfield and Core Laboratories 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 China Oilfield and Core Laboratories into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Oilfield Svcs and Core Laboratories NV, you can compare the effects of market volatilities on China Oilfield and Core Laboratories 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 China Oilfield with a short position of Core Laboratories. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Oilfield and Core Laboratories.

Diversification Opportunities for China Oilfield and Core Laboratories

0.09
  Correlation Coefficient

Significant diversification

The 3 months correlation between China and Core Laboratories is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding China Oilfield Svcs and Core Laboratories NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Laboratories and China Oilfield 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 China Oilfield Svcs are associated (or correlated) with Core Laboratories. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Laboratories has no effect on the direction of China Oilfield i.e., China Oilfield and Core Laboratories go up and down completely randomly.

Pair Corralation between China Oilfield and Core Laboratories

Assuming the 90 days horizon China Oilfield Svcs is expected to generate 0.85 times more return on investment than Core Laboratories. However, China Oilfield Svcs is 1.17 times less risky than Core Laboratories. It trades about 0.01 of its potential returns per unit of risk. Core Laboratories NV is currently generating about -0.15 per unit of risk. If you would invest  102.00  in China Oilfield Svcs on July 2, 2022 and sell it today you would lose (2.00)  from holding China Oilfield Svcs or give up 1.96% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

China Oilfield Svcs  vs.  Core Laboratories NV

 Performance (%) 
       Timeline  
China Oilfield Svcs 
China Performance
0 of 100
Over the last 90 days China Oilfield Svcs has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's essential indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

China Price Channel

Core Laboratories 
Core Laboratories Performance
0 of 100
Over the last 90 days Core Laboratories NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's essential indicators remain somewhat strong which may send shares a bit higher in October 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Core Laboratories Price Channel

China Oilfield and Core Laboratories Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with China Oilfield and Core Laboratories

The main advantage of trading using opposite China Oilfield and Core Laboratories positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Oilfield position performs unexpectedly, Core Laboratories 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 Core Laboratories will offset losses from the drop in Core Laboratories' long position.
China Oilfield vs. Amazon Inc
The idea behind China Oilfield Svcs and Core Laboratories NV pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Core Laboratories vs. Amazon Inc
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

Other Complementary Tools

CEO Directory
Screen CEOs from public companies around the world
Go
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go