Correlation Between Xian International and Maoming Petro
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By analyzing existing cross correlation between Xian International Medical and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on Xian International 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 Xian International with a short position of Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xian International and Maoming Petro.
Diversification Opportunities for Xian International and Maoming Petro
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xian and Maoming is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Xian International Medical 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 Xian International 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 Xian International Medical 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 Xian International i.e., Xian International and Maoming Petro go up and down completely randomly.
Pair Corralation between Xian International and Maoming Petro
Assuming the 90 days trading horizon Xian International Medical is expected to generate 3.73 times more return on investment than Maoming Petro. However, Xian International is 3.73 times more volatile than Maoming Petro Chemical Shihua. It trades about 0.26 of its potential returns per unit of risk. Maoming Petro Chemical Shihua is currently generating about -0.06 per unit of risk. If you would invest 501.00 in Xian International Medical on December 4, 2024 and sell it today you would earn a total of 109.00 from holding Xian International Medical or generate 21.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xian International Medical vs. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| Xian International |
| Maoming Petro Chemical |
Xian International and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xian International and Maoming Petro
The main advantage of trading using opposite Xian International and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xian International 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.| Xian International vs. CICC Fund Management | Xian International vs. Bosera CMSK Industrial | Xian International vs. Tibet Huayu Mining | Xian International vs. Rongcheer Industrial Technology |
| Maoming Petro vs. Digiwin Software Co | Maoming Petro vs. Qingdao Hi Tech Moulds | Maoming Petro vs. Anhui Deli Household | Maoming Petro vs. China Greatwall Computer |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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