Correlation Between Taiji Computer and Maoming Petro
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By analyzing existing cross correlation between Taiji Computer Corp and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on Taiji Computer 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 Taiji Computer with a short position of Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taiji Computer and Maoming Petro.
Diversification Opportunities for Taiji Computer and Maoming Petro
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Taiji and Maoming is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Taiji Computer Corp 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 Taiji Computer 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 Taiji Computer Corp 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 Taiji Computer i.e., Taiji Computer and Maoming Petro go up and down completely randomly.
Pair Corralation between Taiji Computer and Maoming Petro
Assuming the 90 days trading horizon Taiji Computer Corp is expected to generate 1.41 times more return on investment than Maoming Petro. However, Taiji Computer is 1.41 times more volatile than Maoming Petro Chemical Shihua. It trades about -0.06 of its potential returns per unit of risk. Maoming Petro Chemical Shihua is currently generating about -0.14 per unit of risk. If you would invest 2,427 in Taiji Computer Corp on October 28, 2024 and sell it today you would lose (79.00) from holding Taiji Computer Corp or give up 3.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Taiji Computer Corp vs. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| Taiji Computer Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Maoming Petro Chemical |
Taiji Computer and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taiji Computer and Maoming Petro
The main advantage of trading using opposite Taiji Computer and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taiji Computer 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.| Taiji Computer vs. North Copper Shanxi | Taiji Computer vs. Jiangsu Financial Leasing | Taiji Computer vs. Sunny Loan Top | Taiji Computer vs. Citic Guoan Wine |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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