Correlation Between Shandong Sanyuan and China Petroleum
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By analyzing existing cross correlation between Shandong Sanyuan Biotechnology and China Petroleum Chemical, you can compare the effects of market volatilities on Shandong Sanyuan 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 Shandong Sanyuan with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sanyuan and China Petroleum.
Diversification Opportunities for Shandong Sanyuan and China Petroleum
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shandong and China is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sanyuan Biotechnology 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 Shandong Sanyuan 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 Shandong Sanyuan Biotechnology 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 Shandong Sanyuan i.e., Shandong Sanyuan and China Petroleum go up and down completely randomly.
Pair Corralation between Shandong Sanyuan and China Petroleum
Assuming the 90 days trading horizon Shandong Sanyuan Biotechnology is expected to under-perform the China Petroleum. In addition to that, Shandong Sanyuan is 1.84 times more volatile than China Petroleum Chemical. It trades about -0.08 of its total potential returns per unit of risk. China Petroleum Chemical is currently generating about -0.03 per unit of volatility. If you would invest 633.00 in China Petroleum Chemical on October 22, 2024 and sell it today you would lose (11.00) from holding China Petroleum Chemical or give up 1.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Sanyuan Biotechnology vs. China Petroleum Chemical
Performance |
| Timeline |
| Shandong Sanyuan Bio |
| China Petroleum Chemical |
Shandong Sanyuan and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sanyuan and China Petroleum
The main advantage of trading using opposite Shandong Sanyuan and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sanyuan 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.| Shandong Sanyuan vs. Guocheng Mining Co | Shandong Sanyuan vs. Jinhui Mining Co | Shandong Sanyuan vs. JCHX Mining Management | Shandong Sanyuan vs. Uroica Mining Safety |
| China Petroleum vs. Bangyan Technology Co | China Petroleum vs. Olympic Circuit Technology | China Petroleum vs. Guangdong Xiongsu Technology | China Petroleum vs. Lander Sports Development |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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