Correlation Between China Petroleum and Shenzhen Aisidi
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By analyzing existing cross correlation between China Petroleum Chemical and Shenzhen Aisidi Co, you can compare the effects of market volatilities on China Petroleum and Shenzhen Aisidi 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 Shenzhen Aisidi. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Shenzhen Aisidi.
Diversification Opportunities for China Petroleum and Shenzhen Aisidi
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and Shenzhen is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Shenzhen Aisidi Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Aisidi 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 Shenzhen Aisidi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Aisidi has no effect on the direction of China Petroleum i.e., China Petroleum and Shenzhen Aisidi go up and down completely randomly.
Pair Corralation between China Petroleum and Shenzhen Aisidi
Assuming the 90 days trading horizon China Petroleum Chemical is expected to generate 0.14 times more return on investment than Shenzhen Aisidi. However, China Petroleum Chemical is 6.96 times less risky than Shenzhen Aisidi. It trades about 0.12 of its potential returns per unit of risk. Shenzhen Aisidi Co is currently generating about -0.08 per unit of risk. If you would invest 624.00 in China Petroleum Chemical on September 3, 2024 and sell it today you would earn a total of 12.00 from holding China Petroleum Chemical or generate 1.92% 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. Shenzhen Aisidi Co
Performance |
| Timeline |
| China Petroleum Chemical |
| Shenzhen Aisidi |
China Petroleum and Shenzhen Aisidi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Shenzhen Aisidi
The main advantage of trading using opposite China Petroleum and Shenzhen Aisidi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Shenzhen Aisidi 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 Shenzhen Aisidi will offset losses from the drop in Shenzhen Aisidi'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 |
| Shenzhen Aisidi vs. Xiamen Bank Co | Shenzhen Aisidi vs. Jiangsu Financial Leasing | Shenzhen Aisidi vs. Jiangsu Jinling Sports | Shenzhen Aisidi vs. Agricultural Bank of |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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