Correlation Between Guangzhou Jointas and Maoming Petro
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By analyzing existing cross correlation between Guangzhou Jointas Chemical and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on Guangzhou Jointas 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 Guangzhou Jointas with a short position of Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jointas and Maoming Petro.
Diversification Opportunities for Guangzhou Jointas and Maoming Petro
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Maoming is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jointas 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 Guangzhou Jointas 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 Guangzhou Jointas 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 Guangzhou Jointas i.e., Guangzhou Jointas and Maoming Petro go up and down completely randomly.
Pair Corralation between Guangzhou Jointas and Maoming Petro
Assuming the 90 days trading horizon Guangzhou Jointas Chemical is expected to under-perform the Maoming Petro. In addition to that, Guangzhou Jointas is 1.06 times more volatile than Maoming Petro Chemical Shihua. It trades about -0.04 of its total potential returns per unit of risk. Maoming Petro Chemical Shihua is currently generating about -0.02 per unit of volatility. If you would invest 539.00 in Maoming Petro Chemical Shihua on October 26, 2024 and sell it today you would lose (176.00) from holding Maoming Petro Chemical Shihua or give up 32.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jointas Chemical vs. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| Guangzhou Jointas |
| Maoming Petro Chemical |
Guangzhou Jointas and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jointas and Maoming Petro
The main advantage of trading using opposite Guangzhou Jointas and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jointas 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.| Guangzhou Jointas vs. Chengdu Spaceon Electronics | Guangzhou Jointas vs. Bus Online Co | Guangzhou Jointas vs. China Asset Management | Guangzhou Jointas vs. Jilin OLED Material |
| Maoming Petro vs. Fiberhome Telecommunication Technologies | Maoming Petro vs. Jinhui Liquor Co | Maoming Petro vs. Jiangsu Financial Leasing | Maoming Petro vs. Caihong Display Devices |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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