Correlation Between China Petroleum and Anhui Deli
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By analyzing existing cross correlation between China Petroleum Chemical and Anhui Deli Household, you can compare the effects of market volatilities on China Petroleum and Anhui Deli 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 Anhui Deli. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Anhui Deli.
Diversification Opportunities for China Petroleum and Anhui Deli
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and Anhui is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Anhui Deli Household in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Deli Household 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 Anhui Deli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Deli Household has no effect on the direction of China Petroleum i.e., China Petroleum and Anhui Deli go up and down completely randomly.
Pair Corralation between China Petroleum and Anhui Deli
Assuming the 90 days trading horizon China Petroleum Chemical is expected to under-perform the Anhui Deli. But the stock apears to be less risky and, when comparing its historical volatility, China Petroleum Chemical is 3.52 times less risky than Anhui Deli. The stock trades about -0.09 of its potential returns per unit of risk. The Anhui Deli Household is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 541.00 in Anhui Deli Household on October 13, 2024 and sell it today you would lose (11.00) from holding Anhui Deli Household or give up 2.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Petroleum Chemical vs. Anhui Deli Household
Performance |
| Timeline |
| China Petroleum Chemical |
| Anhui Deli Household |
China Petroleum and Anhui Deli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Anhui Deli
The main advantage of trading using opposite China Petroleum and Anhui Deli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Anhui Deli 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 Anhui Deli will offset losses from the drop in Anhui Deli's long position.| China Petroleum vs. Xiangyang Automobile Bearing | China Petroleum vs. Guangdong Shenglu Telecommunication | China Petroleum vs. Shenzhen AV Display Co | China Petroleum vs. Everdisplay Optronics Shanghai |
| Anhui Deli vs. Healthcare Co | Anhui Deli vs. Cultural Investment Holdings | Anhui Deli vs. Shanghai Rongtai Health | Anhui Deli vs. Xiandai Investment Co |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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