Correlation Between Shantui Construction and China Petroleum
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By analyzing existing cross correlation between Shantui Construction Machinery and China Petroleum Chemical, you can compare the effects of market volatilities on Shantui Construction and China Petroleum 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 Shantui Construction with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shantui Construction and China Petroleum.
Diversification Opportunities for Shantui Construction and China Petroleum
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shantui and China is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Shantui Construction Machinery and China Petroleum Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Petroleum Chemical and Shantui Construction 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 Shantui Construction Machinery are associated (or correlated) with China Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Petroleum Chemical has no effect on the direction of Shantui Construction i.e., Shantui Construction and China Petroleum go up and down completely randomly.
Pair Corralation between Shantui Construction and China Petroleum
Assuming the 90 days trading horizon Shantui Construction Machinery is expected to generate 3.03 times more return on investment than China Petroleum. However, Shantui Construction is 3.03 times more volatile than China Petroleum Chemical. It trades about 0.05 of its potential returns per unit of risk. China Petroleum Chemical is currently generating about -0.43 per unit of risk. If you would invest 982.00 in Shantui Construction Machinery on November 4, 2024 and sell it today you would earn a total of 21.00 from holding Shantui Construction Machinery or generate 2.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shantui Construction Machinery vs. China Petroleum Chemical
Performance |
| Timeline |
| Shantui Construction |
| China Petroleum Chemical |
Shantui Construction and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shantui Construction and China Petroleum
The main advantage of trading using opposite Shantui Construction and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shantui Construction position performs unexpectedly, China Petroleum 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 China Petroleum will offset losses from the drop in China Petroleum's long position.| Shantui Construction vs. Iat Automobile Technology | Shantui Construction vs. Jinyu Bio Technology Co | Shantui Construction vs. Ningbo Tech Bank Co | Shantui Construction vs. UCloud Technology Co |
| China Petroleum vs. Giantec Semiconductor Corp | China Petroleum vs. Zbit Semiconductor A | China Petroleum vs. GRINM Semiconductor Materials | China Petroleum vs. Dingli Communications Corp |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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