Correlation Between China Petroleum and Zhejiang Century
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Petroleum Chemical and Zhejiang Century Huatong, you can compare the effects of market volatilities on China Petroleum and Zhejiang Century 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 Zhejiang Century. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Zhejiang Century.
Diversification Opportunities for China Petroleum and Zhejiang Century
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Zhejiang is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Zhejiang Century Huatong in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Century Huatong 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 Zhejiang Century. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Century Huatong has no effect on the direction of China Petroleum i.e., China Petroleum and Zhejiang Century go up and down completely randomly.
Pair Corralation between China Petroleum and Zhejiang Century
Assuming the 90 days trading horizon China Petroleum Chemical is expected to generate 0.52 times more return on investment than Zhejiang Century. However, China Petroleum Chemical is 1.93 times less risky than Zhejiang Century. It trades about 0.06 of its potential returns per unit of risk. Zhejiang Century Huatong is currently generating about 0.02 per unit of risk. If you would invest 432.00 in China Petroleum Chemical on September 4, 2024 and sell it today you would earn a total of 199.00 from holding China Petroleum Chemical or generate 46.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
China Petroleum Chemical vs. Zhejiang Century Huatong
Performance |
| Timeline |
| China Petroleum Chemical |
| Zhejiang Century Huatong |
China Petroleum and Zhejiang Century Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Zhejiang Century
The main advantage of trading using opposite China Petroleum and Zhejiang Century positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Zhejiang Century 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 Zhejiang Century will offset losses from the drop in Zhejiang Century's long position.| China Petroleum vs. Jointo Energy Investment | China Petroleum vs. Jilin Jlu Communication | China Petroleum vs. Shenzhen Centralcon Investment | China Petroleum vs. Beijing Mainstreets Investment |
| Zhejiang Century vs. Shenzhen Bioeasy Biotechnology | Zhejiang Century vs. Tianshui Huatian Technology | Zhejiang Century vs. Sichuan Hebang Biotechnology | Zhejiang Century vs. Kingsignal Technology 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |