Correlation Between Maoming Petro and Industrial
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By analyzing existing cross correlation between Maoming Petro Chemical Shihua and Industrial and Commercial, you can compare the effects of market volatilities on Maoming Petro and Industrial 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maoming Petro and Industrial.
Diversification Opportunities for Maoming Petro and Industrial
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Maoming and Industrial is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Maoming Petro Chemical Shihua and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Maoming Petro i.e., Maoming Petro and Industrial go up and down completely randomly.
Pair Corralation between Maoming Petro and Industrial
Assuming the 90 days trading horizon Maoming Petro Chemical Shihua is expected to under-perform the Industrial. In addition to that, Maoming Petro is 1.2 times more volatile than Industrial and Commercial. It trades about -0.14 of its total potential returns per unit of risk. Industrial and Commercial is currently generating about -0.12 per unit of volatility. If you would invest 692.00 in Industrial and Commercial on October 28, 2024 and sell it today you would lose (25.00) from holding Industrial and Commercial or give up 3.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maoming Petro Chemical Shihua vs. Industrial and Commercial
Performance |
| Timeline |
| Maoming Petro Chemical |
| Industrial and Commercial |
Maoming Petro and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maoming Petro and Industrial
The main advantage of trading using opposite Maoming Petro and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maoming Petro position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial's long position.| Maoming Petro vs. Meinian Onehealth Healthcare | Maoming Petro vs. Youngy Health Co | Maoming Petro vs. Shanghai Yaoji Playing | Maoming Petro vs. Goodwill E Health |
| Industrial vs. Dongfeng Automobile Co | Industrial vs. Bank of Communications | Industrial vs. Nanjing OLO Home | Industrial vs. Easyhome New Retail |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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