Correlation Between China Petroleum and De Rucci
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Petroleum Chemical and De Rucci Healthy, you can compare the effects of market volatilities on China Petroleum and De Rucci 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 De Rucci. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and De Rucci.
Diversification Opportunities for China Petroleum and De Rucci
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and 001323 is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and De Rucci Healthy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on De Rucci Healthy 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 De Rucci. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of De Rucci Healthy has no effect on the direction of China Petroleum i.e., China Petroleum and De Rucci go up and down completely randomly.
Pair Corralation between China Petroleum and De Rucci
Assuming the 90 days trading horizon China Petroleum is expected to generate 2.03 times less return on investment than De Rucci. But when comparing it to its historical volatility, China Petroleum Chemical is 1.1 times less risky than De Rucci. It trades about 0.04 of its potential returns per unit of risk. De Rucci Healthy is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,880 in De Rucci Healthy on August 25, 2024 and sell it today you would earn a total of 865.00 from holding De Rucci Healthy or generate 30.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Petroleum Chemical vs. De Rucci Healthy
Performance |
| Timeline |
| China Petroleum Chemical |
| De Rucci Healthy |
China Petroleum and De Rucci Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and De Rucci
The main advantage of trading using opposite China Petroleum and De Rucci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, De Rucci 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 De Rucci will offset losses from the drop in De Rucci's long position.| China Petroleum vs. Nantong Haixing Electronics | China Petroleum vs. CITIC Metal Co | China Petroleum vs. Guangzhou Dongfang Hotel | China Petroleum vs. Unigroup Guoxin Microelectronics |
| De Rucci vs. China Petroleum Chemical | De Rucci vs. PetroChina Co Ltd | De Rucci vs. China State Construction | De Rucci vs. China Railway 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |