Correlation Between Zhejiang Yayi and China Petroleum
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By analyzing existing cross correlation between Zhejiang Yayi Metal and China Petroleum Chemical, you can compare the effects of market volatilities on Zhejiang Yayi 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 Zhejiang Yayi with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yayi and China Petroleum.
Diversification Opportunities for Zhejiang Yayi and China Petroleum
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zhejiang and China is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yayi Metal 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 Zhejiang Yayi 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 Zhejiang Yayi Metal 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 Zhejiang Yayi i.e., Zhejiang Yayi and China Petroleum go up and down completely randomly.
Pair Corralation between Zhejiang Yayi and China Petroleum
Assuming the 90 days trading horizon Zhejiang Yayi Metal is expected to under-perform the China Petroleum. In addition to that, Zhejiang Yayi is 2.3 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 0.04 per unit of volatility. If you would invest 539.00 in China Petroleum Chemical on August 25, 2024 and sell it today you would earn a total of 88.00 from holding China Petroleum Chemical or generate 16.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yayi Metal vs. China Petroleum Chemical
Performance |
| Timeline |
| Zhejiang Yayi Metal |
| China Petroleum Chemical |
Zhejiang Yayi and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yayi and China Petroleum
The main advantage of trading using opposite Zhejiang Yayi and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yayi 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.| Zhejiang Yayi vs. China Petroleum Chemical | Zhejiang Yayi vs. PetroChina Co Ltd | Zhejiang Yayi vs. China State Construction | Zhejiang Yayi vs. China Railway Group |
| China Petroleum vs. Nantong Haixing Electronics | China Petroleum vs. CITIC Metal Co | China Petroleum vs. Guangzhou Dongfang Hotel | China Petroleum vs. Unigroup Guoxin Microelectronics |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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