Correlation Between China Petroleum and Muyuan Foodstuff
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By analyzing existing cross correlation between China Petroleum Chemical and Muyuan Foodstuff Co, you can compare the effects of market volatilities on China Petroleum and Muyuan Foodstuff 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 Muyuan Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Muyuan Foodstuff.
Diversification Opportunities for China Petroleum and Muyuan Foodstuff
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Muyuan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Muyuan Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muyuan Foodstuff 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 Muyuan Foodstuff. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Muyuan Foodstuff has no effect on the direction of China Petroleum i.e., China Petroleum and Muyuan Foodstuff go up and down completely randomly.
Pair Corralation between China Petroleum and Muyuan Foodstuff
Assuming the 90 days trading horizon China Petroleum Chemical is expected to generate 0.71 times more return on investment than Muyuan Foodstuff. However, China Petroleum Chemical is 1.4 times less risky than Muyuan Foodstuff. It trades about 0.19 of its potential returns per unit of risk. Muyuan Foodstuff Co is currently generating about -0.45 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 | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Petroleum Chemical vs. Muyuan Foodstuff Co
Performance |
| Timeline |
| China Petroleum Chemical |
| Muyuan Foodstuff |
China Petroleum and Muyuan Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Muyuan Foodstuff
The main advantage of trading using opposite China Petroleum and Muyuan Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Muyuan Foodstuff 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 Muyuan Foodstuff will offset losses from the drop in Muyuan Foodstuff'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 |
| Muyuan Foodstuff vs. China Petroleum Chemical | Muyuan Foodstuff vs. PetroChina Co Ltd | Muyuan Foodstuff vs. China State Construction | Muyuan Foodstuff 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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