Correlation Between Jiangsu Yanghe and Maoming Petro
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By analyzing existing cross correlation between Jiangsu Yanghe Brewery and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on Jiangsu Yanghe 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 Jiangsu Yanghe with a short position of Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yanghe and Maoming Petro.
Diversification Opportunities for Jiangsu Yanghe and Maoming Petro
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Maoming is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yanghe Brewery 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 Jiangsu Yanghe 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 Jiangsu Yanghe Brewery 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 Jiangsu Yanghe i.e., Jiangsu Yanghe and Maoming Petro go up and down completely randomly.
Pair Corralation between Jiangsu Yanghe and Maoming Petro
Assuming the 90 days trading horizon Jiangsu Yanghe Brewery is expected to under-perform the Maoming Petro. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Yanghe Brewery is 1.68 times less risky than Maoming Petro. The stock trades about -0.17 of its potential returns per unit of risk. The Maoming Petro Chemical Shihua is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 409.00 in Maoming Petro Chemical Shihua on September 13, 2024 and sell it today you would earn a total of 19.00 from holding Maoming Petro Chemical Shihua or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yanghe Brewery vs. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| Jiangsu Yanghe Brewery |
| Maoming Petro Chemical |
Jiangsu Yanghe and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yanghe and Maoming Petro
The main advantage of trading using opposite Jiangsu Yanghe and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yanghe 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.| Jiangsu Yanghe vs. China Life Insurance | Jiangsu Yanghe vs. Cinda Securities Co | Jiangsu Yanghe vs. Piotech Inc A | Jiangsu Yanghe vs. Dongxing Sec Co |
| Maoming Petro vs. Blue Sail Medical | Maoming Petro vs. Beijing Wandong Medical | Maoming Petro vs. Jiangsu Yanghe Brewery | Maoming Petro vs. Xian International Medical |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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