Correlation Between North Huajin and Maoming Petro
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By analyzing existing cross correlation between North Huajin Chemical and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on North Huajin and Maoming Petro 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 North Huajin with a short position of Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of North Huajin and Maoming Petro.
Diversification Opportunities for North Huajin and Maoming Petro
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between North and Maoming is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding North Huajin Chemical and Maoming Petro Chemical Shihua in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maoming Petro Chemical and North Huajin 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 North Huajin Chemical are associated (or correlated) with Maoming Petro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maoming Petro Chemical has no effect on the direction of North Huajin i.e., North Huajin and Maoming Petro go up and down completely randomly.
Pair Corralation between North Huajin and Maoming Petro
Assuming the 90 days trading horizon North Huajin Chemical is expected to under-perform the Maoming Petro. In addition to that, North Huajin is 1.07 times more volatile than Maoming Petro Chemical Shihua. It trades about 0.0 of its total potential returns per unit of risk. Maoming Petro Chemical Shihua is currently generating about 0.03 per unit of volatility. If you would invest 331.00 in Maoming Petro Chemical Shihua on September 1, 2024 and sell it today you would earn a total of 69.00 from holding Maoming Petro Chemical Shihua or generate 20.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.72% |
| Values | Daily Returns |
North Huajin Chemical vs. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| North Huajin Chemical |
| Maoming Petro Chemical |
North Huajin and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North Huajin and Maoming Petro
The main advantage of trading using opposite North Huajin and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Huajin position performs unexpectedly, Maoming Petro 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 Maoming Petro will offset losses from the drop in Maoming Petro's long position.| North Huajin vs. Aurora Optoelectronics Co | North Huajin vs. Anhui Jianghuai Automobile | North Huajin vs. China Life Insurance | North Huajin vs. Haima Automobile Group |
| Maoming Petro vs. Chongqing Brewery Co | Maoming Petro vs. Changchun Engley Automobile | Maoming Petro vs. Glodon Software Co | Maoming Petro vs. Dhc Software 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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