Correlation Between Guilin Seamild and Maoming Petro
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By analyzing existing cross correlation between Guilin Seamild Foods and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on Guilin Seamild 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 Guilin Seamild with a short position of Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and Maoming Petro.
Diversification Opportunities for Guilin Seamild and Maoming Petro
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guilin and Maoming is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods 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 Guilin Seamild 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 Guilin Seamild Foods 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 Guilin Seamild i.e., Guilin Seamild and Maoming Petro go up and down completely randomly.
Pair Corralation between Guilin Seamild and Maoming Petro
Assuming the 90 days trading horizon Guilin Seamild Foods is expected to generate 1.1 times more return on investment than Maoming Petro. However, Guilin Seamild is 1.1 times more volatile than Maoming Petro Chemical Shihua. It trades about 0.06 of its potential returns per unit of risk. Maoming Petro Chemical Shihua is currently generating about 0.04 per unit of risk. If you would invest 1,263 in Guilin Seamild Foods on October 12, 2024 and sell it today you would earn a total of 333.00 from holding Guilin Seamild Foods or generate 26.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guilin Seamild Foods vs. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| Guilin Seamild Foods |
| Maoming Petro Chemical |
Guilin Seamild and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guilin Seamild and Maoming Petro
The main advantage of trading using opposite Guilin Seamild and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild 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.| Guilin Seamild vs. Beijing Kingsoft Office | Guilin Seamild vs. Fibocom Wireless | Guilin Seamild vs. Ningbo MedicalSystem Biotechnology | Guilin Seamild vs. Guangdong Marubi Biotechnology |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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