Correlation Between Shandong Ruifeng and China Petroleum
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By analyzing existing cross correlation between Shandong Ruifeng Chemical and China Petroleum Chemical, you can compare the effects of market volatilities on Shandong Ruifeng and China Petroleum 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 Shandong Ruifeng with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Ruifeng and China Petroleum.
Diversification Opportunities for Shandong Ruifeng and China Petroleum
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shandong and China is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Ruifeng Chemical and China Petroleum Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Petroleum Chemical and Shandong Ruifeng 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 Shandong Ruifeng Chemical are associated (or correlated) with China Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Petroleum Chemical has no effect on the direction of Shandong Ruifeng i.e., Shandong Ruifeng and China Petroleum go up and down completely randomly.
Pair Corralation between Shandong Ruifeng and China Petroleum
Assuming the 90 days trading horizon Shandong Ruifeng Chemical is expected to generate 4.45 times more return on investment than China Petroleum. However, Shandong Ruifeng is 4.45 times more volatile than China Petroleum Chemical. It trades about 0.27 of its potential returns per unit of risk. China Petroleum Chemical is currently generating about -0.07 per unit of risk. If you would invest 991.00 in Shandong Ruifeng Chemical on August 28, 2024 and sell it today you would earn a total of 300.00 from holding Shandong Ruifeng Chemical or generate 30.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Ruifeng Chemical vs. China Petroleum Chemical
Performance |
| Timeline |
| Shandong Ruifeng Chemical |
| China Petroleum Chemical |
Shandong Ruifeng and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Ruifeng and China Petroleum
The main advantage of trading using opposite Shandong Ruifeng and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Ruifeng position performs unexpectedly, China Petroleum 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 China Petroleum will offset losses from the drop in China Petroleum's long position.| Shandong Ruifeng vs. Jinhui Mining Co | Shandong Ruifeng vs. Chengtun Mining Group | Shandong Ruifeng vs. Zijin Mining Group | Shandong Ruifeng vs. Beijing Kaiwen Education |
| China Petroleum vs. Winner Medical Co | China Petroleum vs. Jiujiang Shanshui Technology | China Petroleum vs. Northking Information Technology | China Petroleum vs. Tianshui Huatian Technology |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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