Correlation Between Hunan Airbluer and China Petroleum
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By analyzing existing cross correlation between Hunan Airbluer Environmental and China Petroleum Chemical, you can compare the effects of market volatilities on Hunan Airbluer 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 Hunan Airbluer with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Airbluer and China Petroleum.
Diversification Opportunities for Hunan Airbluer and China Petroleum
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hunan and China is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Airbluer Environmental 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 Hunan Airbluer 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 Hunan Airbluer Environmental 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 Hunan Airbluer i.e., Hunan Airbluer and China Petroleum go up and down completely randomly.
Pair Corralation between Hunan Airbluer and China Petroleum
Assuming the 90 days trading horizon Hunan Airbluer Environmental is expected to under-perform the China Petroleum. In addition to that, Hunan Airbluer is 3.75 times more volatile than China Petroleum Chemical. It trades about 0.0 of its total potential returns per unit of risk. China Petroleum Chemical is currently generating about 0.15 per unit of volatility. If you would invest 618.00 in China Petroleum Chemical on September 1, 2024 and sell it today you would earn a total of 18.00 from holding China Petroleum Chemical or generate 2.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hunan Airbluer Environmental vs. China Petroleum Chemical
Performance |
| Timeline |
| Hunan Airbluer Envir |
| China Petroleum Chemical |
Hunan Airbluer and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Airbluer and China Petroleum
The main advantage of trading using opposite Hunan Airbluer and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Airbluer 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.| Hunan Airbluer vs. Bank of China | Hunan Airbluer vs. Kweichow Moutai Co | Hunan Airbluer vs. PetroChina Co Ltd | Hunan Airbluer vs. Bank of Communications |
| China Petroleum vs. Shanghai Material Trading | China Petroleum vs. Dazhong Transportation Group | China Petroleum vs. Luyin Investment Group | China Petroleum vs. Hubeiyichang Transportation Group |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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