Correlation Between Hunan Mendale and Maoming Petro
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By analyzing existing cross correlation between Hunan Mendale Hometextile and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on Hunan Mendale 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 Hunan Mendale with a short position of Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Mendale and Maoming Petro.
Diversification Opportunities for Hunan Mendale and Maoming Petro
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hunan and Maoming is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Mendale Hometextile 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 Hunan Mendale 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 Hunan Mendale Hometextile 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 Hunan Mendale i.e., Hunan Mendale and Maoming Petro go up and down completely randomly.
Pair Corralation between Hunan Mendale and Maoming Petro
Assuming the 90 days trading horizon Hunan Mendale Hometextile is expected to generate 1.4 times more return on investment than Maoming Petro. However, Hunan Mendale is 1.4 times more volatile than Maoming Petro Chemical Shihua. It trades about 0.17 of its potential returns per unit of risk. Maoming Petro Chemical Shihua is currently generating about 0.06 per unit of risk. If you would invest 180.00 in Hunan Mendale Hometextile on October 7, 2024 and sell it today you would earn a total of 175.00 from holding Hunan Mendale Hometextile or generate 97.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Mendale Hometextile vs. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| Hunan Mendale Hometextile |
| Maoming Petro Chemical |
Hunan Mendale and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Mendale and Maoming Petro
The main advantage of trading using opposite Hunan Mendale and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Mendale 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.| Hunan Mendale vs. Agricultural Bank of | Hunan Mendale vs. Postal Savings Bank | Hunan Mendale vs. Gansu Jiu Steel | Hunan Mendale vs. Shandong Mining Machinery |
| Maoming Petro vs. Zijin Mining Group | Maoming Petro vs. Wanhua Chemical Group | Maoming Petro vs. Baoshan Iron Steel | Maoming Petro vs. Rongsheng Petrochemical 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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