Correlation Between Maoming Petro and Jilin OLED
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By analyzing existing cross correlation between Maoming Petro Chemical Shihua and Jilin OLED Material, you can compare the effects of market volatilities on Maoming Petro and Jilin OLED 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 Jilin OLED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maoming Petro and Jilin OLED.
Diversification Opportunities for Maoming Petro and Jilin OLED
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Maoming and Jilin is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Maoming Petro Chemical Shihua and Jilin OLED Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jilin OLED Material 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 Jilin OLED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jilin OLED Material has no effect on the direction of Maoming Petro i.e., Maoming Petro and Jilin OLED go up and down completely randomly.
Pair Corralation between Maoming Petro and Jilin OLED
Assuming the 90 days trading horizon Maoming Petro Chemical Shihua is expected to generate 0.53 times more return on investment than Jilin OLED. However, Maoming Petro Chemical Shihua is 1.9 times less risky than Jilin OLED. It trades about -0.08 of its potential returns per unit of risk. Jilin OLED Material is currently generating about -0.11 per unit of risk. If you would invest 373.00 in Maoming Petro Chemical Shihua on October 29, 2024 and sell it today you would lose (10.00) from holding Maoming Petro Chemical Shihua or give up 2.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maoming Petro Chemical Shihua vs. Jilin OLED Material
Performance |
| Timeline |
| Maoming Petro Chemical |
| Jilin OLED Material |
Maoming Petro and Jilin OLED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maoming Petro and Jilin OLED
The main advantage of trading using opposite Maoming Petro and Jilin OLED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maoming Petro position performs unexpectedly, Jilin OLED 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 Jilin OLED will offset losses from the drop in Jilin OLED's long position.| Maoming Petro vs. Sanbo Hospital Management | Maoming Petro vs. Shenzhen AV Display Co | Maoming Petro vs. Changchun Engley Automobile | Maoming Petro vs. Youngy Health Co |
| Jilin OLED vs. Kailong High Technology | Jilin OLED vs. CICC Fund Management | Jilin OLED vs. Capitalonline Data Service | Jilin OLED vs. Cicc Fund Management |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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