Correlation Between Beijing Mainstreets and China Petroleum
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By analyzing existing cross correlation between Beijing Mainstreets Investment and China Petroleum Chemical, you can compare the effects of market volatilities on Beijing Mainstreets 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 Beijing Mainstreets with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and China Petroleum.
Diversification Opportunities for Beijing Mainstreets and China Petroleum
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Beijing and China is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets 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 Beijing Mainstreets 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 Beijing Mainstreets 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 Beijing Mainstreets i.e., Beijing Mainstreets and China Petroleum go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and China Petroleum
Assuming the 90 days trading horizon Beijing Mainstreets Investment is expected to generate 4.37 times more return on investment than China Petroleum. However, Beijing Mainstreets is 4.37 times more volatile than China Petroleum Chemical. It trades about 0.08 of its potential returns per unit of risk. China Petroleum Chemical is currently generating about 0.07 per unit of risk. If you would invest 233.00 in Beijing Mainstreets Investment on September 4, 2024 and sell it today you would earn a total of 11.00 from holding Beijing Mainstreets Investment or generate 4.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Mainstreets Investment vs. China Petroleum Chemical
Performance |
| Timeline |
| Beijing Mainstreets |
| China Petroleum Chemical |
Beijing Mainstreets and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Mainstreets and China Petroleum
The main advantage of trading using opposite Beijing Mainstreets and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets 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.| Beijing Mainstreets vs. UE Furniture Co | Beijing Mainstreets vs. Super Dragon Engineering Plastics | Beijing Mainstreets vs. Xinke Material | Beijing Mainstreets vs. Fuda Alloy Materials |
| China Petroleum vs. Jointo Energy Investment | China Petroleum vs. Jilin Jlu Communication | China Petroleum vs. Shenzhen Centralcon Investment | China Petroleum vs. Beijing Mainstreets Investment |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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