Correlation Between Guangdong Xiongsu and China Petroleum
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Xiongsu Technology and China Petroleum Chemical, you can compare the effects of market volatilities on Guangdong Xiongsu 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 Guangdong Xiongsu with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Xiongsu and China Petroleum.
Diversification Opportunities for Guangdong Xiongsu and China Petroleum
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Guangdong and China is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Xiongsu Technology 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 Guangdong Xiongsu 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 Guangdong Xiongsu Technology 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 Guangdong Xiongsu i.e., Guangdong Xiongsu and China Petroleum go up and down completely randomly.
Pair Corralation between Guangdong Xiongsu and China Petroleum
Assuming the 90 days trading horizon Guangdong Xiongsu Technology is expected to generate 2.76 times more return on investment than China Petroleum. However, Guangdong Xiongsu is 2.76 times more volatile than China Petroleum Chemical. It trades about -0.12 of its potential returns per unit of risk. China Petroleum Chemical is currently generating about -0.41 per unit of risk. If you would invest 702.00 in Guangdong Xiongsu Technology on November 3, 2024 and sell it today you would lose (46.00) from holding Guangdong Xiongsu Technology or give up 6.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Xiongsu Technology vs. China Petroleum Chemical
Performance |
| Timeline |
| Guangdong Xiongsu |
| China Petroleum Chemical |
Guangdong Xiongsu and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Xiongsu and China Petroleum
The main advantage of trading using opposite Guangdong Xiongsu and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Xiongsu 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.| Guangdong Xiongsu vs. Ziel Home Furnishing | Guangdong Xiongsu vs. Xilong Chemical Co | Guangdong Xiongsu vs. Vohringer Home Technology | Guangdong Xiongsu vs. Air China Ltd |
| China Petroleum vs. Tongxing Environmental Protection | China Petroleum vs. Linewell Software Co | China Petroleum vs. Montage Technology Co | China Petroleum vs. Linktel Technologies Co |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |