Correlation Between Maoming Petro and Soyea Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Maoming Petro Chemical Shihua and Soyea Technology Co, you can compare the effects of market volatilities on Maoming Petro and Soyea Technology 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 Maoming Petro with a short position of Soyea Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maoming Petro and Soyea Technology.
Diversification Opportunities for Maoming Petro and Soyea Technology
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Maoming and Soyea is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Maoming Petro Chemical Shihua and Soyea Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soyea Technology and Maoming Petro 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 Maoming Petro Chemical Shihua are associated (or correlated) with Soyea Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soyea Technology has no effect on the direction of Maoming Petro i.e., Maoming Petro and Soyea Technology go up and down completely randomly.
Pair Corralation between Maoming Petro and Soyea Technology
Assuming the 90 days trading horizon Maoming Petro Chemical Shihua is expected to generate 0.89 times more return on investment than Soyea Technology. However, Maoming Petro Chemical Shihua is 1.13 times less risky than Soyea Technology. It trades about -0.03 of its potential returns per unit of risk. Soyea Technology Co is currently generating about -0.04 per unit of risk. If you would invest 533.00 in Maoming Petro Chemical Shihua on October 16, 2024 and sell it today you would lose (187.00) from holding Maoming Petro Chemical Shihua or give up 35.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maoming Petro Chemical Shihua vs. Soyea Technology Co
Performance |
| Timeline |
| Maoming Petro Chemical |
| Soyea Technology |
Maoming Petro and Soyea Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maoming Petro and Soyea Technology
The main advantage of trading using opposite Maoming Petro and Soyea Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maoming Petro position performs unexpectedly, Soyea Technology 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 Soyea Technology will offset losses from the drop in Soyea Technology's long position.| Maoming Petro vs. Jonjee Hi tech Industrial | Maoming Petro vs. Oppein Home Group | Maoming Petro vs. Fujian Newland Computer | Maoming Petro vs. Nanjing Putian Telecommunications |
| Soyea Technology vs. Ningxia Younglight Chemicals | Soyea Technology vs. Xinya Electronic Co | Soyea Technology vs. Xinxiang Chemical Fiber | Soyea Technology vs. Maoming Petro Chemical Shihua |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |