Correlation Between Rongsheng Petrochemical and Maoming Petro
Specify exactly 2 symbols:
By analyzing existing cross correlation between Rongsheng Petrochemical Co and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on Rongsheng Petrochemical 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 Rongsheng Petrochemical with a short position of Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rongsheng Petrochemical and Maoming Petro.
Diversification Opportunities for Rongsheng Petrochemical and Maoming Petro
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Rongsheng and Maoming is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Rongsheng Petrochemical Co 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 Rongsheng Petrochemical 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 Rongsheng Petrochemical Co 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 Rongsheng Petrochemical i.e., Rongsheng Petrochemical and Maoming Petro go up and down completely randomly.
Pair Corralation between Rongsheng Petrochemical and Maoming Petro
Assuming the 90 days trading horizon Rongsheng Petrochemical is expected to generate 2.31 times less return on investment than Maoming Petro. But when comparing it to its historical volatility, Rongsheng Petrochemical Co is 1.18 times less risky than Maoming Petro. It trades about 0.09 of its potential returns per unit of risk. Maoming Petro Chemical Shihua is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 314.00 in Maoming Petro Chemical Shihua on September 3, 2024 and sell it today you would earn a total of 86.00 from holding Maoming Petro Chemical Shihua or generate 27.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rongsheng Petrochemical Co vs. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| Rongsheng Petrochemical |
| Maoming Petro Chemical |
Rongsheng Petrochemical and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rongsheng Petrochemical and Maoming Petro
The main advantage of trading using opposite Rongsheng Petrochemical and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rongsheng Petrochemical 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.| Rongsheng Petrochemical vs. Zijin Mining Group | Rongsheng Petrochemical vs. Baoshan Iron Steel | Rongsheng Petrochemical vs. Hoshine Silicon Ind |
| Maoming Petro vs. Zijin Mining Group | Maoming Petro vs. Baoshan Iron Steel | Maoming Petro vs. Rongsheng Petrochemical Co | Maoming Petro vs. Hoshine Silicon Ind |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |