Correlation Between Guangzhou Shangpin and China Petroleum
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By analyzing existing cross correlation between Guangzhou Shangpin Home and China Petroleum Chemical, you can compare the effects of market volatilities on Guangzhou Shangpin 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 Guangzhou Shangpin with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Shangpin and China Petroleum.
Diversification Opportunities for Guangzhou Shangpin and China Petroleum
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangzhou and China is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Shangpin Home 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 Guangzhou Shangpin 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 Shangpin Home 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 Guangzhou Shangpin i.e., Guangzhou Shangpin and China Petroleum go up and down completely randomly.
Pair Corralation between Guangzhou Shangpin and China Petroleum
Assuming the 90 days trading horizon Guangzhou Shangpin Home is expected to under-perform the China Petroleum. In addition to that, Guangzhou Shangpin is 2.16 times more volatile than China Petroleum Chemical. It trades about -0.03 of its total potential returns per unit of risk. China Petroleum Chemical is currently generating about -0.04 per unit of volatility. If you would invest 644.00 in China Petroleum Chemical on August 29, 2024 and sell it today you would lose (8.00) from holding China Petroleum Chemical or give up 1.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Shangpin Home vs. China Petroleum Chemical
Performance |
| Timeline |
| Guangzhou Shangpin Home |
| China Petroleum Chemical |
Guangzhou Shangpin and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Shangpin and China Petroleum
The main advantage of trading using opposite Guangzhou Shangpin and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Shangpin 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.| Guangzhou Shangpin vs. Agricultural Bank of | Guangzhou Shangpin vs. Industrial and Commercial | Guangzhou Shangpin vs. Bank of China | Guangzhou Shangpin vs. China Construction Bank |
| China Petroleum vs. Anhui Huilong Agricultural | China Petroleum vs. Chinese Universe Publishing | China Petroleum vs. Shanghai Action Education | China Petroleum vs. Time Publishing 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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