Correlation Between Unigroup Guoxin and China Petroleum
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By analyzing existing cross correlation between Unigroup Guoxin Microelectronics and China Petroleum Chemical, you can compare the effects of market volatilities on Unigroup Guoxin 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 Unigroup Guoxin with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unigroup Guoxin and China Petroleum.
Diversification Opportunities for Unigroup Guoxin and China Petroleum
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Unigroup and China is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Unigroup Guoxin Microelectroni 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 Unigroup Guoxin 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 Unigroup Guoxin Microelectronics 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 Unigroup Guoxin i.e., Unigroup Guoxin and China Petroleum go up and down completely randomly.
Pair Corralation between Unigroup Guoxin and China Petroleum
Assuming the 90 days trading horizon Unigroup Guoxin Microelectronics is expected to under-perform the China Petroleum. In addition to that, Unigroup Guoxin is 3.05 times more volatile than China Petroleum Chemical. It trades about -0.08 of its total potential returns per unit of risk. China Petroleum Chemical is currently generating about -0.13 per unit of volatility. If you would invest 649.00 in China Petroleum Chemical on August 25, 2024 and sell it today you would lose (22.00) from holding China Petroleum Chemical or give up 3.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unigroup Guoxin Microelectroni vs. China Petroleum Chemical
Performance |
| Timeline |
| Unigroup Guoxin Micr |
| China Petroleum Chemical |
Unigroup Guoxin and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unigroup Guoxin and China Petroleum
The main advantage of trading using opposite Unigroup Guoxin and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unigroup Guoxin 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.| Unigroup Guoxin vs. Harbin Hatou Investment | Unigroup Guoxin vs. Everjoy Health Group | Unigroup Guoxin vs. Anhui Huaren Health | Unigroup Guoxin vs. Jointo Energy Investment |
| China Petroleum vs. Nantong Haixing Electronics | China Petroleum vs. CITIC Metal Co | China Petroleum vs. Guangzhou Dongfang Hotel | China Petroleum vs. Unigroup Guoxin Microelectronics |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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