Correlation Between Maoming Petro and Penghua Shenzhen
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By analyzing existing cross correlation between Maoming Petro Chemical Shihua and Penghua Shenzhen Energy, you can compare the effects of market volatilities on Maoming Petro and Penghua Shenzhen 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 Penghua Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maoming Petro and Penghua Shenzhen.
Diversification Opportunities for Maoming Petro and Penghua Shenzhen
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Maoming and Penghua is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Maoming Petro Chemical Shihua and Penghua Shenzhen Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penghua Shenzhen Energy 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 Penghua Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penghua Shenzhen Energy has no effect on the direction of Maoming Petro i.e., Maoming Petro and Penghua Shenzhen go up and down completely randomly.
Pair Corralation between Maoming Petro and Penghua Shenzhen
Assuming the 90 days trading horizon Maoming Petro Chemical Shihua is expected to under-perform the Penghua Shenzhen. In addition to that, Maoming Petro is 2.53 times more volatile than Penghua Shenzhen Energy. It trades about 0.0 of its total potential returns per unit of risk. Penghua Shenzhen Energy is currently generating about 0.0 per unit of volatility. If you would invest 620.00 in Penghua Shenzhen Energy on September 3, 2024 and sell it today you would lose (19.00) from holding Penghua Shenzhen Energy or give up 3.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maoming Petro Chemical Shihua vs. Penghua Shenzhen Energy
Performance |
| Timeline |
| Maoming Petro Chemical |
| Penghua Shenzhen Energy |
Maoming Petro and Penghua Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maoming Petro and Penghua Shenzhen
The main advantage of trading using opposite Maoming Petro and Penghua Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maoming Petro position performs unexpectedly, Penghua Shenzhen 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 Penghua Shenzhen will offset losses from the drop in Penghua Shenzhen'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 |
| Penghua Shenzhen vs. Kingclean Electric Co | Penghua Shenzhen vs. Hainan Haiqi Transportation | Penghua Shenzhen vs. Vohringer Home Technology | Penghua Shenzhen vs. Mengtian Home Group |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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