Correlation Between Eit Environmental and China Petroleum
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By analyzing existing cross correlation between Eit Environmental Development and China Petroleum Chemical, you can compare the effects of market volatilities on Eit Environmental 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 Eit Environmental with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eit Environmental and China Petroleum.
Diversification Opportunities for Eit Environmental and China Petroleum
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eit and China is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Eit Environmental Development 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 Eit Environmental 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 Eit Environmental Development 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 Eit Environmental i.e., Eit Environmental and China Petroleum go up and down completely randomly.
Pair Corralation between Eit Environmental and China Petroleum
Assuming the 90 days trading horizon Eit Environmental Development is expected to generate 3.61 times more return on investment than China Petroleum. However, Eit Environmental is 3.61 times more volatile than China Petroleum Chemical. It trades about 0.0 of its potential returns per unit of risk. China Petroleum Chemical is currently generating about -0.04 per unit of risk. If you would invest 1,549 in Eit Environmental Development on August 29, 2024 and sell it today you would lose (32.00) from holding Eit Environmental Development or give up 2.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eit Environmental Development vs. China Petroleum Chemical
Performance |
| Timeline |
| Eit Environmental |
| China Petroleum Chemical |
Eit Environmental and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eit Environmental and China Petroleum
The main advantage of trading using opposite Eit Environmental and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eit Environmental 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.| Eit Environmental vs. PetroChina Co Ltd | Eit Environmental vs. China State Construction | Eit Environmental vs. China Mobile Limited | Eit Environmental vs. Industrial and Commercial |
| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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