Correlation Between Maoming Petro and Zhejiang Hisoar
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By analyzing existing cross correlation between Maoming Petro Chemical Shihua and Zhejiang Hisoar Pharmaceutical, you can compare the effects of market volatilities on Maoming Petro and Zhejiang Hisoar 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 Zhejiang Hisoar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maoming Petro and Zhejiang Hisoar.
Diversification Opportunities for Maoming Petro and Zhejiang Hisoar
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Maoming and Zhejiang is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Maoming Petro Chemical Shihua and Zhejiang Hisoar Pharmaceutical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Hisoar Phar 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 Zhejiang Hisoar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Hisoar Phar has no effect on the direction of Maoming Petro i.e., Maoming Petro and Zhejiang Hisoar go up and down completely randomly.
Pair Corralation between Maoming Petro and Zhejiang Hisoar
Assuming the 90 days trading horizon Maoming Petro Chemical Shihua is expected to generate 0.89 times more return on investment than Zhejiang Hisoar. However, Maoming Petro Chemical Shihua is 1.12 times less risky than Zhejiang Hisoar. It trades about 0.13 of its potential returns per unit of risk. Zhejiang Hisoar Pharmaceutical is currently generating about -0.07 per unit of risk. If you would invest 409.00 in Maoming Petro Chemical Shihua on September 12, 2024 and sell it today you would earn a total of 19.00 from holding Maoming Petro Chemical Shihua or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maoming Petro Chemical Shihua vs. Zhejiang Hisoar Pharmaceutical
Performance |
| Timeline |
| Maoming Petro Chemical |
| Zhejiang Hisoar Phar |
Maoming Petro and Zhejiang Hisoar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maoming Petro and Zhejiang Hisoar
The main advantage of trading using opposite Maoming Petro and Zhejiang Hisoar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maoming Petro position performs unexpectedly, Zhejiang Hisoar 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 Zhejiang Hisoar will offset losses from the drop in Zhejiang Hisoar's long position.| Maoming Petro vs. Zijin Mining Group | Maoming Petro vs. Wanhua Chemical Group | Maoming Petro vs. Baoshan Iron Steel | Maoming Petro vs. Rongsheng Petrochemical Co |
| Zhejiang Hisoar vs. Shandong Hi Speed RoadBridge | Zhejiang Hisoar vs. Luolai Home Textile | Zhejiang Hisoar vs. Hubeiyichang Transportation Group | Zhejiang Hisoar vs. Anhui Transport Consulting |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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