Correlation Between Shenzhen Centralcon and China Petroleum
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and China Petroleum Chemical, you can compare the effects of market volatilities on Shenzhen Centralcon and China Petroleum 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 Shenzhen Centralcon with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and China Petroleum.
Diversification Opportunities for Shenzhen Centralcon and China Petroleum
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and China is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and China Petroleum Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Petroleum Chemical and Shenzhen Centralcon 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 Shenzhen Centralcon Investment are associated (or correlated) with China Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Petroleum Chemical has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and China Petroleum go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and China Petroleum
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to generate 2.0 times more return on investment than China Petroleum. However, Shenzhen Centralcon is 2.0 times more volatile than China Petroleum Chemical. It trades about 0.07 of its potential returns per unit of risk. China Petroleum Chemical is currently generating about 0.03 per unit of risk. If you would invest 433.00 in Shenzhen Centralcon Investment on September 12, 2024 and sell it today you would earn a total of 117.00 from holding Shenzhen Centralcon Investment or generate 27.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Centralcon Investment vs. China Petroleum Chemical
Performance |
| Timeline |
| Shenzhen Centralcon |
| China Petroleum Chemical |
Shenzhen Centralcon and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and China Petroleum
The main advantage of trading using opposite Shenzhen Centralcon and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, China Petroleum 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 Petroleum will offset losses from the drop in China Petroleum's long position.| Shenzhen Centralcon vs. Industrial and Commercial | Shenzhen Centralcon vs. China Construction Bank | Shenzhen Centralcon vs. Bank of China | Shenzhen Centralcon vs. Agricultural Bank of |
| China Petroleum vs. Western Superconducting Tech | China Petroleum vs. Holitech Technology Co | China Petroleum vs. Ping An Insurance | China Petroleum vs. Chengdu Xinzhu RoadBridge |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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