Correlation Between Suzhou Fushilai and China Petroleum
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By analyzing existing cross correlation between Suzhou Fushilai Pharmaceutical and China Petroleum Chemical, you can compare the effects of market volatilities on Suzhou Fushilai 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 Suzhou Fushilai with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Fushilai and China Petroleum.
Diversification Opportunities for Suzhou Fushilai and China Petroleum
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Suzhou and China is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Fushilai Pharmaceutical 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 Suzhou Fushilai 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 Suzhou Fushilai Pharmaceutical 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 Suzhou Fushilai i.e., Suzhou Fushilai and China Petroleum go up and down completely randomly.
Pair Corralation between Suzhou Fushilai and China Petroleum
Assuming the 90 days trading horizon Suzhou Fushilai Pharmaceutical is expected to under-perform the China Petroleum. In addition to that, Suzhou Fushilai is 2.48 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 0.02 per unit of volatility. If you would invest 562.00 in China Petroleum Chemical on October 26, 2024 and sell it today you would earn a total of 41.00 from holding China Petroleum Chemical or generate 7.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Fushilai Pharmaceutical vs. China Petroleum Chemical
Performance |
| Timeline |
| Suzhou Fushilai Phar |
| China Petroleum Chemical |
Suzhou Fushilai and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Fushilai and China Petroleum
The main advantage of trading using opposite Suzhou Fushilai and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Fushilai 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.| Suzhou Fushilai vs. China Petroleum Chemical | Suzhou Fushilai vs. PetroChina Co Ltd | Suzhou Fushilai vs. China State Construction | Suzhou Fushilai vs. China Railway Group |
| China Petroleum vs. JuneYao Dairy Co | China Petroleum vs. Everjoy Health Group | China Petroleum vs. Jiahe Foods Industry | China Petroleum vs. Meinian Onehealth Healthcare |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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