Correlation Between China Petroleum and Vatti Corp
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Petroleum Chemical and Vatti Corp, you can compare the effects of market volatilities on China Petroleum and Vatti Corp 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 Vatti Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Vatti Corp.
Diversification Opportunities for China Petroleum and Vatti Corp
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and Vatti is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Vatti Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vatti Corp 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 Vatti Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vatti Corp has no effect on the direction of China Petroleum i.e., China Petroleum and Vatti Corp go up and down completely randomly.
Pair Corralation between China Petroleum and Vatti Corp
Assuming the 90 days trading horizon China Petroleum Chemical is expected to generate 0.69 times more return on investment than Vatti Corp. However, China Petroleum Chemical is 1.44 times less risky than Vatti Corp. It trades about 0.05 of its potential returns per unit of risk. Vatti Corp is currently generating about 0.03 per unit of risk. If you would invest 438.00 in China Petroleum Chemical on October 16, 2024 and sell it today you would earn a total of 183.00 from holding China Petroleum Chemical or generate 41.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Petroleum Chemical vs. Vatti Corp
Performance |
| Timeline |
| China Petroleum Chemical |
| Vatti Corp |
China Petroleum and Vatti Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Vatti Corp
The main advantage of trading using opposite China Petroleum and Vatti Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Vatti Corp 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 Vatti Corp will offset losses from the drop in Vatti Corp's long position.| China Petroleum vs. Jiugui Liquor Co | China Petroleum vs. Bank of Communications | China Petroleum vs. Shenzhen Noposion Agrochemicals | China Petroleum vs. Shandong Rike Chemical |
| Vatti Corp vs. Air China Ltd | Vatti Corp vs. Montage Technology Co | Vatti Corp vs. Digiwin Software Co | Vatti Corp vs. Jiujiang Shanshui 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| CEOs Directory Screen CEOs from public companies around the world |