Correlation Between Maoming Petro and Xiamen Jihong
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By analyzing existing cross correlation between Maoming Petro Chemical Shihua and Xiamen Jihong Package, you can compare the effects of market volatilities on Maoming Petro and Xiamen Jihong 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 Xiamen Jihong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maoming Petro and Xiamen Jihong.
Diversification Opportunities for Maoming Petro and Xiamen Jihong
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Maoming and Xiamen is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Maoming Petro Chemical Shihua and Xiamen Jihong Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Jihong Package 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 Xiamen Jihong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Jihong Package has no effect on the direction of Maoming Petro i.e., Maoming Petro and Xiamen Jihong go up and down completely randomly.
Pair Corralation between Maoming Petro and Xiamen Jihong
Assuming the 90 days trading horizon Maoming Petro Chemical Shihua is expected to generate 0.85 times more return on investment than Xiamen Jihong. However, Maoming Petro Chemical Shihua is 1.17 times less risky than Xiamen Jihong. It trades about 0.04 of its potential returns per unit of risk. Xiamen Jihong Package is currently generating about -0.02 per unit of risk. If you would invest 313.00 in Maoming Petro Chemical Shihua on October 12, 2024 and sell it today you would earn a total of 44.00 from holding Maoming Petro Chemical Shihua or generate 14.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maoming Petro Chemical Shihua vs. Xiamen Jihong Package
Performance |
| Timeline |
| Maoming Petro Chemical |
| Xiamen Jihong Package |
Maoming Petro and Xiamen Jihong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maoming Petro and Xiamen Jihong
The main advantage of trading using opposite Maoming Petro and Xiamen Jihong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maoming Petro position performs unexpectedly, Xiamen Jihong 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 Xiamen Jihong will offset losses from the drop in Xiamen Jihong's long position.| Maoming Petro vs. Tongxing Environmental Protection | Maoming Petro vs. Innovative Medical Management | Maoming Petro vs. Xiangyu Medical Co | Maoming Petro vs. Shandong Iron and |
| Xiamen Jihong vs. Shenzhen Centralcon Investment | Xiamen Jihong vs. Changchun UP Optotech | Xiamen Jihong vs. Tianshui Huatian Technology | Xiamen Jihong vs. Zoje Resources 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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