Correlation Between Zhengzhou Qianweiyangchu and Maoming Petro
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By analyzing existing cross correlation between Zhengzhou Qianweiyangchu Food and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on Zhengzhou Qianweiyangchu and Maoming Petro 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 Zhengzhou Qianweiyangchu with a short position of Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhengzhou Qianweiyangchu and Maoming Petro.
Diversification Opportunities for Zhengzhou Qianweiyangchu and Maoming Petro
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhengzhou and Maoming is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Zhengzhou Qianweiyangchu Food and Maoming Petro Chemical Shihua in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maoming Petro Chemical and Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu Food are associated (or correlated) with Maoming Petro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maoming Petro Chemical has no effect on the direction of Zhengzhou Qianweiyangchu i.e., Zhengzhou Qianweiyangchu and Maoming Petro go up and down completely randomly.
Pair Corralation between Zhengzhou Qianweiyangchu and Maoming Petro
Assuming the 90 days trading horizon Zhengzhou Qianweiyangchu Food is expected to generate 1.42 times more return on investment than Maoming Petro. However, Zhengzhou Qianweiyangchu is 1.42 times more volatile than Maoming Petro Chemical Shihua. It trades about 0.16 of its potential returns per unit of risk. Maoming Petro Chemical Shihua is currently generating about 0.2 per unit of risk. If you would invest 3,285 in Zhengzhou Qianweiyangchu Food on September 4, 2024 and sell it today you would earn a total of 414.00 from holding Zhengzhou Qianweiyangchu Food or generate 12.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhengzhou Qianweiyangchu Food vs. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| Zhengzhou Qianweiyangchu |
| Maoming Petro Chemical |
Zhengzhou Qianweiyangchu and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhengzhou Qianweiyangchu and Maoming Petro
The main advantage of trading using opposite Zhengzhou Qianweiyangchu and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhengzhou Qianweiyangchu position performs unexpectedly, Maoming Petro 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 Maoming Petro will offset losses from the drop in Maoming Petro's long position.| Zhengzhou Qianweiyangchu vs. Poly Real Estate | Zhengzhou Qianweiyangchu vs. China Vanke Co | Zhengzhou Qianweiyangchu vs. China Merchants Shekou | Zhengzhou Qianweiyangchu vs. Huafa Industrial Co |
| Maoming Petro vs. Zijin Mining Group | Maoming Petro vs. Wanhua Chemical Group | Maoming Petro vs. Baoshan Iron Steel | Maoming Petro vs. Shandong Gold Mining |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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