Correlation Between Sichuan Fulin and China Petroleum
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By analyzing existing cross correlation between Sichuan Fulin Transportation and China Petroleum Chemical, you can compare the effects of market volatilities on Sichuan Fulin 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 Sichuan Fulin with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Fulin and China Petroleum.
Diversification Opportunities for Sichuan Fulin and China Petroleum
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sichuan and China is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Fulin Transportation 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 Sichuan Fulin 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 Sichuan Fulin Transportation 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 Sichuan Fulin i.e., Sichuan Fulin and China Petroleum go up and down completely randomly.
Pair Corralation between Sichuan Fulin and China Petroleum
Assuming the 90 days trading horizon Sichuan Fulin Transportation is expected to generate 3.13 times more return on investment than China Petroleum. However, Sichuan Fulin is 3.13 times more volatile than China Petroleum Chemical. It trades about 0.36 of its potential returns per unit of risk. China Petroleum Chemical is currently generating about 0.2 per unit of risk. If you would invest 678.00 in Sichuan Fulin Transportation on September 14, 2024 and sell it today you would earn a total of 144.00 from holding Sichuan Fulin Transportation or generate 21.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Fulin Transportation vs. China Petroleum Chemical
Performance |
| Timeline |
| Sichuan Fulin Transp |
| China Petroleum Chemical |
Sichuan Fulin and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Fulin and China Petroleum
The main advantage of trading using opposite Sichuan Fulin and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Fulin 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.| Sichuan Fulin vs. Ming Yang Smart | Sichuan Fulin vs. 159681 | Sichuan Fulin vs. 159005 | Sichuan Fulin vs. Loctek Ergonomic Technology |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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