Correlation Between China Petroleum and Jiangsu Yanghe
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By analyzing existing cross correlation between China Petroleum Chemical and Jiangsu Yanghe Brewery, you can compare the effects of market volatilities on China Petroleum and Jiangsu Yanghe 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 Jiangsu Yanghe. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Jiangsu Yanghe.
Diversification Opportunities for China Petroleum and Jiangsu Yanghe
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Jiangsu is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Jiangsu Yanghe Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yanghe Brewery 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 Jiangsu Yanghe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yanghe Brewery has no effect on the direction of China Petroleum i.e., China Petroleum and Jiangsu Yanghe go up and down completely randomly.
Pair Corralation between China Petroleum and Jiangsu Yanghe
Assuming the 90 days trading horizon China Petroleum Chemical is expected to generate 0.82 times more return on investment than Jiangsu Yanghe. However, China Petroleum Chemical is 1.21 times less risky than Jiangsu Yanghe. It trades about 0.04 of its potential returns per unit of risk. Jiangsu Yanghe Brewery is currently generating about -0.03 per unit of risk. If you would invest 547.00 in China Petroleum Chemical on September 3, 2024 and sell it today you would earn a total of 84.00 from holding China Petroleum Chemical or generate 15.36% 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. Jiangsu Yanghe Brewery
Performance |
| Timeline |
| China Petroleum Chemical |
| Jiangsu Yanghe Brewery |
China Petroleum and Jiangsu Yanghe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Jiangsu Yanghe
The main advantage of trading using opposite China Petroleum and Jiangsu Yanghe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Jiangsu Yanghe 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 Jiangsu Yanghe will offset losses from the drop in Jiangsu Yanghe's long position.| China Petroleum vs. Eastern Air Logistics | China Petroleum vs. Ningbo Fangzheng Automobile | China Petroleum vs. Xinhua Winshare Publishing | China Petroleum vs. Jiangsu Phoenix Publishing |
| Jiangsu Yanghe vs. Beijing Wantai Biological | Jiangsu Yanghe vs. Aluminum Corp of | Jiangsu Yanghe vs. COL Digital Publishing | Jiangsu Yanghe vs. Shaanxi Meineng Clean |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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