Correlation Between Guizhou Chanhen and Maoming Petro
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By analyzing existing cross correlation between Guizhou Chanhen Chemical and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on Guizhou Chanhen 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 Guizhou Chanhen with a short position of Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guizhou Chanhen and Maoming Petro.
Diversification Opportunities for Guizhou Chanhen and Maoming Petro
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guizhou and Maoming is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Guizhou Chanhen Chemical 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 Guizhou Chanhen 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 Guizhou Chanhen Chemical 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 Guizhou Chanhen i.e., Guizhou Chanhen and Maoming Petro go up and down completely randomly.
Pair Corralation between Guizhou Chanhen and Maoming Petro
Assuming the 90 days trading horizon Guizhou Chanhen Chemical is expected to generate 0.91 times more return on investment than Maoming Petro. However, Guizhou Chanhen Chemical is 1.1 times less risky than Maoming Petro. It trades about -0.05 of its potential returns per unit of risk. Maoming Petro Chemical Shihua is currently generating about -0.32 per unit of risk. If you would invest 2,221 in Guizhou Chanhen Chemical on October 12, 2024 and sell it today you would lose (61.00) from holding Guizhou Chanhen Chemical or give up 2.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guizhou Chanhen Chemical vs. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| Guizhou Chanhen Chemical |
| Maoming Petro Chemical |
Guizhou Chanhen and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guizhou Chanhen and Maoming Petro
The main advantage of trading using opposite Guizhou Chanhen and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guizhou Chanhen 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.| Guizhou Chanhen vs. Fibocom Wireless | Guizhou Chanhen vs. Haima Automobile Group | Guizhou Chanhen vs. Huaxia Fund Management | Guizhou Chanhen vs. Allwin Telecommunication Co |
| Maoming Petro vs. Tongxing Environmental Protection | Maoming Petro vs. Innovative Medical Management | Maoming Petro vs. Xiangyu Medical Co | Maoming Petro vs. Shandong Iron and |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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