Correlation Between Shenzhen INVT and China Petroleum
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By analyzing existing cross correlation between Shenzhen INVT Electric and China Petroleum Chemical, you can compare the effects of market volatilities on Shenzhen INVT 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 Shenzhen INVT with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen INVT and China Petroleum.
Diversification Opportunities for Shenzhen INVT and China Petroleum
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shenzhen and China is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen INVT Electric 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 Shenzhen INVT 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 Shenzhen INVT Electric 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 Shenzhen INVT i.e., Shenzhen INVT and China Petroleum go up and down completely randomly.
Pair Corralation between Shenzhen INVT and China Petroleum
Assuming the 90 days trading horizon Shenzhen INVT Electric is expected to under-perform the China Petroleum. In addition to that, Shenzhen INVT is 1.62 times more volatile than China Petroleum Chemical. It trades about -0.02 of its total potential returns per unit of risk. China Petroleum Chemical is currently generating about 0.05 per unit of volatility. If you would invest 433.00 in China Petroleum Chemical on October 25, 2024 and sell it today you would earn a total of 167.00 from holding China Petroleum Chemical or generate 38.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shenzhen INVT Electric vs. China Petroleum Chemical
Performance |
| Timeline |
| Shenzhen INVT Electric |
| China Petroleum Chemical |
Shenzhen INVT and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen INVT and China Petroleum
The main advantage of trading using opposite Shenzhen INVT and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen INVT 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.| Shenzhen INVT vs. Jiangsu Hoperun Software | Shenzhen INVT vs. Winner Medical Co | Shenzhen INVT vs. Thunder Software Technology | Shenzhen INVT vs. Xiangyu Medical Co |
| China Petroleum vs. Queclink Wireless Solutions | China Petroleum vs. Masterwork Machinery | China Petroleum vs. Shantui Construction Machinery | China Petroleum vs. State Grid InformationCommunication |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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