Correlation Between HeNan Splendor and China Petroleum
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By analyzing existing cross correlation between HeNan Splendor Science and China Petroleum Chemical, you can compare the effects of market volatilities on HeNan Splendor 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 HeNan Splendor with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeNan Splendor and China Petroleum.
Diversification Opportunities for HeNan Splendor and China Petroleum
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between HeNan and China is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding HeNan Splendor Science 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 HeNan Splendor 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 HeNan Splendor Science 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 HeNan Splendor i.e., HeNan Splendor and China Petroleum go up and down completely randomly.
Pair Corralation between HeNan Splendor and China Petroleum
Assuming the 90 days trading horizon HeNan Splendor Science is expected to generate 2.24 times more return on investment than China Petroleum. However, HeNan Splendor is 2.24 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 0.05 per unit of risk. If you would invest 847.00 in HeNan Splendor Science on September 14, 2024 and sell it today you would earn a total of 319.00 from holding HeNan Splendor Science or generate 37.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HeNan Splendor Science vs. China Petroleum Chemical
Performance |
| Timeline |
| HeNan Splendor Science |
| China Petroleum Chemical |
HeNan Splendor and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeNan Splendor and China Petroleum
The main advantage of trading using opposite HeNan Splendor and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeNan Splendor 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.| HeNan Splendor vs. Iat Automobile Technology | HeNan Splendor vs. Wuhan Yangtze Communication | HeNan Splendor vs. Tianjin Pengling Rubber | HeNan Splendor vs. Haima Automobile Group |
| China Petroleum vs. Qilu Bank Co | China Petroleum vs. Postal Savings Bank | China Petroleum vs. HeNan Splendor Science | China Petroleum vs. Western Mining Co |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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