Correlation Between Chengdu Xinzhu and China Petroleum
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By analyzing existing cross correlation between Chengdu Xinzhu RoadBridge and China Petroleum Chemical, you can compare the effects of market volatilities on Chengdu Xinzhu 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 Chengdu Xinzhu with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xinzhu and China Petroleum.
Diversification Opportunities for Chengdu Xinzhu and China Petroleum
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chengdu and China is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xinzhu RoadBridge 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 Chengdu Xinzhu 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 Chengdu Xinzhu RoadBridge 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 Chengdu Xinzhu i.e., Chengdu Xinzhu and China Petroleum go up and down completely randomly.
Pair Corralation between Chengdu Xinzhu and China Petroleum
Assuming the 90 days trading horizon Chengdu Xinzhu RoadBridge is expected to generate 1.93 times more return on investment than China Petroleum. However, Chengdu Xinzhu is 1.93 times more volatile than China Petroleum Chemical. It trades about 0.04 of its potential returns per unit of risk. China Petroleum Chemical is currently generating about 0.01 per unit of risk. If you would invest 472.00 in Chengdu Xinzhu RoadBridge on September 12, 2024 and sell it today you would earn a total of 116.00 from holding Chengdu Xinzhu RoadBridge or generate 24.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xinzhu RoadBridge vs. China Petroleum Chemical
Performance |
| Timeline |
| Chengdu Xinzhu RoadBridge |
| China Petroleum Chemical |
Chengdu Xinzhu and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xinzhu and China Petroleum
The main advantage of trading using opposite Chengdu Xinzhu and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xinzhu 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.| Chengdu Xinzhu vs. Agricultural Bank of | Chengdu Xinzhu vs. Industrial and Commercial | Chengdu Xinzhu vs. Bank of China | Chengdu Xinzhu vs. PetroChina Co Ltd |
| China Petroleum vs. Western Superconducting Tech | China Petroleum vs. Holitech Technology Co | China Petroleum vs. Ping An Insurance | China Petroleum vs. Chengdu Xinzhu RoadBridge |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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