Correlation Between Maoming Petro and Cowealth Medical
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By analyzing existing cross correlation between Maoming Petro Chemical Shihua and Cowealth Medical China, you can compare the effects of market volatilities on Maoming Petro and Cowealth Medical 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 Cowealth Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maoming Petro and Cowealth Medical.
Diversification Opportunities for Maoming Petro and Cowealth Medical
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Maoming and Cowealth is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Maoming Petro Chemical Shihua and Cowealth Medical China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cowealth Medical China 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 Cowealth Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cowealth Medical China has no effect on the direction of Maoming Petro i.e., Maoming Petro and Cowealth Medical go up and down completely randomly.
Pair Corralation between Maoming Petro and Cowealth Medical
Assuming the 90 days trading horizon Maoming Petro Chemical Shihua is expected to generate 0.89 times more return on investment than Cowealth Medical. However, Maoming Petro Chemical Shihua is 1.12 times less risky than Cowealth Medical. It trades about 0.0 of its potential returns per unit of risk. Cowealth Medical China is currently generating about -0.02 per unit of risk. If you would invest 477.00 in Maoming Petro Chemical Shihua on September 3, 2024 and sell it today you would lose (77.00) from holding Maoming Petro Chemical Shihua or give up 16.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maoming Petro Chemical Shihua vs. Cowealth Medical China
Performance |
| Timeline |
| Maoming Petro Chemical |
| Cowealth Medical China |
Maoming Petro and Cowealth Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maoming Petro and Cowealth Medical
The main advantage of trading using opposite Maoming Petro and Cowealth Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maoming Petro position performs unexpectedly, Cowealth Medical 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 Cowealth Medical will offset losses from the drop in Cowealth Medical's long position.| Maoming Petro vs. Zijin Mining Group | Maoming Petro vs. Baoshan Iron Steel | Maoming Petro vs. Rongsheng Petrochemical Co | Maoming Petro vs. Hoshine Silicon Ind |
| Cowealth Medical vs. Zoy Home Furnishing | Cowealth Medical vs. Mengtian Home Group | Cowealth Medical vs. Guangdong Silvere Sci | Cowealth Medical vs. Luolai Home Textile |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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