Correlation Between Maoming Petro and Guizhou Chanhen
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By analyzing existing cross correlation between Maoming Petro Chemical Shihua and Guizhou Chanhen Chemical, you can compare the effects of market volatilities on Maoming Petro and Guizhou Chanhen 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 Guizhou Chanhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maoming Petro and Guizhou Chanhen.
Diversification Opportunities for Maoming Petro and Guizhou Chanhen
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Maoming and Guizhou is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Maoming Petro Chemical Shihua and Guizhou Chanhen Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guizhou Chanhen Chemical 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 Guizhou Chanhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guizhou Chanhen Chemical has no effect on the direction of Maoming Petro i.e., Maoming Petro and Guizhou Chanhen go up and down completely randomly.
Pair Corralation between Maoming Petro and Guizhou Chanhen
Assuming the 90 days trading horizon Maoming Petro Chemical Shihua is expected to under-perform the Guizhou Chanhen. In addition to that, Maoming Petro is 1.1 times more volatile than Guizhou Chanhen Chemical. It trades about -0.32 of its total potential returns per unit of risk. Guizhou Chanhen Chemical is currently generating about -0.05 per unit of volatility. If you would invest 2,221 in Guizhou Chanhen Chemical on October 12, 2024 and sell it today you would lose (61.00) from holding Guizhou Chanhen Chemical or give up 2.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maoming Petro Chemical Shihua vs. Guizhou Chanhen Chemical
Performance |
| Timeline |
| Maoming Petro Chemical |
| Guizhou Chanhen Chemical |
Maoming Petro and Guizhou Chanhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maoming Petro and Guizhou Chanhen
The main advantage of trading using opposite Maoming Petro and Guizhou Chanhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maoming Petro position performs unexpectedly, Guizhou Chanhen 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 Guizhou Chanhen will offset losses from the drop in Guizhou Chanhen'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 |
| Guizhou Chanhen vs. Fibocom Wireless | Guizhou Chanhen vs. Haima Automobile Group | Guizhou Chanhen vs. Huaxia Fund Management | Guizhou Chanhen vs. Allwin Telecommunication Co |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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