Correlation Between Maoming Petro and Guilin Seamild
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By analyzing existing cross correlation between Maoming Petro Chemical Shihua and Guilin Seamild Foods, you can compare the effects of market volatilities on Maoming Petro and Guilin Seamild 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 Guilin Seamild. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maoming Petro and Guilin Seamild.
Diversification Opportunities for Maoming Petro and Guilin Seamild
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Maoming and Guilin is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Maoming Petro Chemical Shihua and Guilin Seamild Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guilin Seamild Foods 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 Guilin Seamild. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guilin Seamild Foods has no effect on the direction of Maoming Petro i.e., Maoming Petro and Guilin Seamild go up and down completely randomly.
Pair Corralation between Maoming Petro and Guilin Seamild
Assuming the 90 days trading horizon Maoming Petro is expected to generate 1.6 times less return on investment than Guilin Seamild. But when comparing it to its historical volatility, Maoming Petro Chemical Shihua is 1.1 times less risky than Guilin Seamild. It trades about 0.04 of its potential returns per unit of risk. Guilin Seamild Foods is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,263 in Guilin Seamild Foods on October 12, 2024 and sell it today you would earn a total of 333.00 from holding Guilin Seamild Foods or generate 26.37% 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. Guilin Seamild Foods
Performance |
| Timeline |
| Maoming Petro Chemical |
| Guilin Seamild Foods |
Maoming Petro and Guilin Seamild Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maoming Petro and Guilin Seamild
The main advantage of trading using opposite Maoming Petro and Guilin Seamild positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maoming Petro position performs unexpectedly, Guilin Seamild 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 Guilin Seamild will offset losses from the drop in Guilin Seamild'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 |
| Guilin Seamild vs. Beijing Kingsoft Office | Guilin Seamild vs. Fibocom Wireless | Guilin Seamild vs. Ningbo MedicalSystem Biotechnology | Guilin Seamild vs. Guangdong Marubi Biotechnology |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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