Correlation Between Shengyuan Environmental and China Petroleum
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By analyzing existing cross correlation between Shengyuan Environmental Protection and China Petroleum Chemical, you can compare the effects of market volatilities on Shengyuan 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 Shengyuan Environmental with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengyuan Environmental and China Petroleum.
Diversification Opportunities for Shengyuan Environmental and China Petroleum
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shengyuan and China is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Shengyuan Environmental Protec 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 Shengyuan 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 Shengyuan Environmental Protection 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 Shengyuan Environmental i.e., Shengyuan Environmental and China Petroleum go up and down completely randomly.
Pair Corralation between Shengyuan Environmental and China Petroleum
Assuming the 90 days trading horizon Shengyuan Environmental Protection is expected to under-perform the China Petroleum. In addition to that, Shengyuan Environmental is 1.4 times more volatile than China Petroleum Chemical. It trades about -0.01 of its total potential returns per unit of risk. China Petroleum Chemical is currently generating about 0.05 per unit of volatility. If you would invest 445.00 in China Petroleum Chemical on August 28, 2024 and sell it today you would earn a total of 188.00 from holding China Petroleum Chemical or generate 42.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shengyuan Environmental Protec vs. China Petroleum Chemical
Performance |
| Timeline |
| Shengyuan Environmental |
| China Petroleum Chemical |
Shengyuan Environmental and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengyuan Environmental and China Petroleum
The main advantage of trading using opposite Shengyuan Environmental and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengyuan 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.| Shengyuan Environmental vs. China Petroleum Chemical | Shengyuan Environmental vs. PetroChina Co Ltd | Shengyuan Environmental vs. China State Construction | Shengyuan Environmental vs. China Railway Group |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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