Correlation Between Chenzhou Jingui and Maoming Petro
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By analyzing existing cross correlation between Chenzhou Jingui Silver and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on Chenzhou Jingui 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 Chenzhou Jingui with a short position of Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chenzhou Jingui and Maoming Petro.
Diversification Opportunities for Chenzhou Jingui and Maoming Petro
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chenzhou and Maoming is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Chenzhou Jingui Silver 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 Chenzhou Jingui 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 Chenzhou Jingui Silver 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 Chenzhou Jingui i.e., Chenzhou Jingui and Maoming Petro go up and down completely randomly.
Pair Corralation between Chenzhou Jingui and Maoming Petro
Assuming the 90 days trading horizon Chenzhou Jingui Silver is expected to generate 1.95 times more return on investment than Maoming Petro. However, Chenzhou Jingui is 1.95 times more volatile than Maoming Petro Chemical Shihua. It trades about 0.11 of its potential returns per unit of risk. Maoming Petro Chemical Shihua is currently generating about 0.13 per unit of risk. If you would invest 375.00 in Chenzhou Jingui Silver on September 13, 2024 and sell it today you would earn a total of 27.00 from holding Chenzhou Jingui Silver or generate 7.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chenzhou Jingui Silver vs. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| Chenzhou Jingui Silver |
| Maoming Petro Chemical |
Chenzhou Jingui and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chenzhou Jingui and Maoming Petro
The main advantage of trading using opposite Chenzhou Jingui and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chenzhou Jingui 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.| Chenzhou Jingui vs. Zijin Mining Group | Chenzhou Jingui vs. Wanhua Chemical Group | Chenzhou Jingui vs. Baoshan Iron Steel | Chenzhou Jingui vs. Shandong Gold Mining |
| Maoming Petro vs. Blue Sail Medical | Maoming Petro vs. Beijing Wandong Medical | Maoming Petro vs. Jiangsu Yanghe Brewery | Maoming Petro vs. Xian International Medical |
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..
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