Correlation Between Guangdong Qunxing and Maoming Petro
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By analyzing existing cross correlation between Guangdong Qunxing Toys and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on Guangdong Qunxing 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 Guangdong Qunxing with a short position of Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Qunxing and Maoming Petro.
Diversification Opportunities for Guangdong Qunxing and Maoming Petro
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and Maoming is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Qunxing Toys 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 Guangdong Qunxing 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 Guangdong Qunxing Toys 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 Guangdong Qunxing i.e., Guangdong Qunxing and Maoming Petro go up and down completely randomly.
Pair Corralation between Guangdong Qunxing and Maoming Petro
Assuming the 90 days trading horizon Guangdong Qunxing Toys is expected to generate 1.39 times more return on investment than Maoming Petro. However, Guangdong Qunxing is 1.39 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 405.00 in Guangdong Qunxing Toys on October 7, 2024 and sell it today you would earn a total of 386.00 from holding Guangdong Qunxing Toys or generate 95.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Qunxing Toys vs. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| Guangdong Qunxing Toys |
| Maoming Petro Chemical |
Guangdong Qunxing and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Qunxing and Maoming Petro
The main advantage of trading using opposite Guangdong Qunxing and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Qunxing 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.| Guangdong Qunxing vs. Agricultural Bank of | Guangdong Qunxing vs. Postal Savings Bank | Guangdong Qunxing vs. Gansu Jiu Steel | Guangdong Qunxing 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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