Correlation Between Do Fluoride and China Petroleum
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By analyzing existing cross correlation between Do Fluoride Chemicals Co and China Petroleum Chemical, you can compare the effects of market volatilities on Do Fluoride 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 Do Fluoride with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Do Fluoride and China Petroleum.
Diversification Opportunities for Do Fluoride and China Petroleum
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 002407 and China is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Do Fluoride Chemicals Co 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 Do Fluoride 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 Do Fluoride Chemicals Co 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 Do Fluoride i.e., Do Fluoride and China Petroleum go up and down completely randomly.
Pair Corralation between Do Fluoride and China Petroleum
Assuming the 90 days trading horizon Do Fluoride Chemicals Co is expected to under-perform the China Petroleum. In addition to that, Do Fluoride is 1.4 times more volatile than China Petroleum Chemical. It trades about -0.24 of its total potential returns per unit of risk. China Petroleum Chemical is currently generating about -0.13 per unit of volatility. If you would invest 646.00 in China Petroleum Chemical on October 20, 2024 and sell it today you would lose (24.00) from holding China Petroleum Chemical or give up 3.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Do Fluoride Chemicals Co vs. China Petroleum Chemical
Performance |
| Timeline |
| Do Fluoride Chemicals |
| China Petroleum Chemical |
Do Fluoride and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Do Fluoride and China Petroleum
The main advantage of trading using opposite Do Fluoride and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Do Fluoride 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.| Do Fluoride vs. Zijin Mining Group | Do Fluoride vs. Wanhua Chemical Group | Do Fluoride vs. Baoshan Iron Steel | Do Fluoride vs. Shandong Gold Mining |
| China Petroleum vs. Eyebright Medical Technology | China Petroleum vs. Do Fluoride Chemicals Co | China Petroleum vs. Leyard Optoelectronic | China Petroleum vs. Jiangyin Jianghua Microelectronics |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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