Correlation Between Xizi Clean and China Petroleum
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By analyzing existing cross correlation between Xizi Clean Energy and China Petroleum Chemical, you can compare the effects of market volatilities on Xizi Clean 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 Xizi Clean with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xizi Clean and China Petroleum.
Diversification Opportunities for Xizi Clean and China Petroleum
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xizi and China is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Xizi Clean Energy 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 Xizi Clean 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 Xizi Clean Energy 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 Xizi Clean i.e., Xizi Clean and China Petroleum go up and down completely randomly.
Pair Corralation between Xizi Clean and China Petroleum
Assuming the 90 days trading horizon Xizi Clean Energy is expected to under-perform the China Petroleum. In addition to that, Xizi Clean is 1.58 times more volatile than China Petroleum Chemical. It trades about -0.02 of its total potential returns per unit of risk. China Petroleum Chemical is currently generating about 0.01 per unit of volatility. If you would invest 642.00 in China Petroleum Chemical on September 2, 2024 and sell it today you would lose (6.00) from holding China Petroleum Chemical or give up 0.93% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Xizi Clean Energy vs. China Petroleum Chemical
Performance |
Timeline |
Xizi Clean Energy |
China Petroleum Chemical |
Xizi Clean and China Petroleum Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xizi Clean and China Petroleum
The main advantage of trading using opposite Xizi Clean and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xizi Clean 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.Xizi Clean vs. New China Life | Xizi Clean vs. Ming Yang Smart | Xizi Clean vs. 159681 | Xizi Clean vs. 159005 |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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