Correlation Between Chiba Bank and Vantage Drilling

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Can any of the company-specific risk be diversified away by investing in both Chiba Bank and Vantage Drilling 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 Chiba Bank and Vantage Drilling into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chiba Bank Ltd and Vantage Drilling International, you can compare the effects of market volatilities on Chiba Bank and Vantage Drilling 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 Chiba Bank with a short position of Vantage Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chiba Bank and Vantage Drilling.

Diversification Opportunities for Chiba Bank and Vantage Drilling

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Chiba and Vantage is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chiba Bank Ltd and Vantage Drilling International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vantage Drilling Int and Chiba Bank 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 Chiba Bank Ltd are associated (or correlated) with Vantage Drilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vantage Drilling Int has no effect on the direction of Chiba Bank i.e., Chiba Bank and Vantage Drilling go up and down completely randomly.

Pair Corralation between Chiba Bank and Vantage Drilling

If you would invest  4,937  in Chiba Bank Ltd on August 30, 2025 and sell it today you would earn a total of  168.00  from holding Chiba Bank Ltd or generate 3.4% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Chiba Bank Ltd  vs.  Vantage Drilling International

 Performance 
       Timeline  
Chiba Bank 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Chiba Bank Ltd are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Chiba Bank is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.
Vantage Drilling Int 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Vantage Drilling International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Vantage Drilling is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Chiba Bank and Vantage Drilling Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Chiba Bank and Vantage Drilling

The main advantage of trading using opposite Chiba Bank and Vantage Drilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chiba Bank position performs unexpectedly, Vantage Drilling 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 Vantage Drilling will offset losses from the drop in Vantage Drilling's long position.
The idea behind Chiba Bank Ltd and Vantage Drilling International 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.
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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