Correlation Between China Petroleum and Ningbo Tech
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By analyzing existing cross correlation between China Petroleum Chemical and Ningbo Tech Bank Co, you can compare the effects of market volatilities on China Petroleum and Ningbo Tech 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 Ningbo Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Ningbo Tech.
Diversification Opportunities for China Petroleum and Ningbo Tech
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Ningbo is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Ningbo Tech Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Tech Bank 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 Ningbo Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Tech Bank has no effect on the direction of China Petroleum i.e., China Petroleum and Ningbo Tech go up and down completely randomly.
Pair Corralation between China Petroleum and Ningbo Tech
Assuming the 90 days trading horizon China Petroleum Chemical is expected to generate 0.38 times more return on investment than Ningbo Tech. However, China Petroleum Chemical is 2.63 times less risky than Ningbo Tech. It trades about 0.19 of its potential returns per unit of risk. Ningbo Tech Bank Co is currently generating about -0.22 per unit of risk. If you would invest 623.00 in China Petroleum Chemical on September 12, 2024 and sell it today you would earn a total of 21.00 from holding China Petroleum Chemical or generate 3.37% 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. Ningbo Tech Bank Co
Performance |
| Timeline |
| China Petroleum Chemical |
| Ningbo Tech Bank |
China Petroleum and Ningbo Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Ningbo Tech
The main advantage of trading using opposite China Petroleum and Ningbo Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Ningbo Tech 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 Ningbo Tech will offset losses from the drop in Ningbo Tech's long position.| China Petroleum vs. Western Superconducting Tech | China Petroleum vs. Holitech Technology Co | China Petroleum vs. Ping An Insurance | China Petroleum vs. Chengdu Xinzhu RoadBridge |
| Ningbo Tech vs. China Petroleum Chemical | Ningbo Tech vs. PetroChina Co Ltd | Ningbo Tech vs. China State Construction | Ningbo Tech 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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