Correlation Between China Petroleum and Gansu Huangtai
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By analyzing existing cross correlation between China Petroleum Chemical and Gansu Huangtai Wine marketing, you can compare the effects of market volatilities on China Petroleum and Gansu Huangtai 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 China Petroleum with a short position of Gansu Huangtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Gansu Huangtai.
Diversification Opportunities for China Petroleum and Gansu Huangtai
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Gansu is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Gansu Huangtai Wine marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Huangtai Wine and China Petroleum 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 China Petroleum Chemical are associated (or correlated) with Gansu Huangtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Huangtai Wine has no effect on the direction of China Petroleum i.e., China Petroleum and Gansu Huangtai go up and down completely randomly.
Pair Corralation between China Petroleum and Gansu Huangtai
Assuming the 90 days trading horizon China Petroleum is expected to generate 1.85 times less return on investment than Gansu Huangtai. But when comparing it to its historical volatility, China Petroleum Chemical is 4.83 times less risky than Gansu Huangtai. It trades about 0.23 of its potential returns per unit of risk. Gansu Huangtai Wine marketing is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,527 in Gansu Huangtai Wine marketing on September 13, 2024 and sell it today you would earn a total of 97.00 from holding Gansu Huangtai Wine marketing or generate 6.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Petroleum Chemical vs. Gansu Huangtai Wine marketing
Performance |
| Timeline |
| China Petroleum Chemical |
| Gansu Huangtai Wine |
China Petroleum and Gansu Huangtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Gansu Huangtai
The main advantage of trading using opposite China Petroleum and Gansu Huangtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Gansu Huangtai 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 Gansu Huangtai will offset losses from the drop in Gansu Huangtai's long position.| China Petroleum vs. Shanghai Metersbonwe FashionAccessories | China Petroleum vs. China Sports Industry | China Petroleum vs. Zhongshan Broad Ocean Motor | China Petroleum vs. Sichuan Fulin Transportation |
| Gansu Huangtai vs. Tianjin Capital Environmental | Gansu Huangtai vs. Hang Xiao Steel | Gansu Huangtai vs. Zhejiang Kingland Pipeline | Gansu Huangtai vs. Sinocat Environmental 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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