Correlation Between Blue Sail and Maoming Petro
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By analyzing existing cross correlation between Blue Sail Medical and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on Blue Sail 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 Blue Sail with a short position of Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Sail and Maoming Petro.
Diversification Opportunities for Blue Sail and Maoming Petro
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Blue and Maoming is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Blue Sail Medical 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 Blue Sail 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 Blue Sail Medical 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 Blue Sail i.e., Blue Sail and Maoming Petro go up and down completely randomly.
Pair Corralation between Blue Sail and Maoming Petro
Assuming the 90 days trading horizon Blue Sail is expected to generate 1.84 times less return on investment than Maoming Petro. In addition to that, Blue Sail is 1.1 times more volatile than Maoming Petro Chemical Shihua. It trades about 0.06 of its total potential returns per unit of risk. Maoming Petro Chemical Shihua is currently generating about 0.13 per unit of volatility. 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Sail Medical vs. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| Blue Sail Medical |
| Maoming Petro Chemical |
Blue Sail and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Sail and Maoming Petro
The main advantage of trading using opposite Blue Sail and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Sail 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.| Blue Sail vs. Industrial and Commercial | Blue Sail vs. Kweichow Moutai Co | Blue Sail vs. Agricultural Bank of | Blue Sail vs. China Mobile Limited |
| 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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