Correlation Between China Petroleum and Mingchen Health
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By analyzing existing cross correlation between China Petroleum Chemical and Mingchen Health Co, you can compare the effects of market volatilities on China Petroleum and Mingchen Health 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 Mingchen Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Mingchen Health.
Diversification Opportunities for China Petroleum and Mingchen Health
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Mingchen is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Mingchen Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mingchen Health 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 Mingchen Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mingchen Health has no effect on the direction of China Petroleum i.e., China Petroleum and Mingchen Health go up and down completely randomly.
Pair Corralation between China Petroleum and Mingchen Health
Assuming the 90 days trading horizon China Petroleum is expected to generate 1.5 times less return on investment than Mingchen Health. But when comparing it to its historical volatility, China Petroleum Chemical is 3.14 times less risky than Mingchen Health. It trades about 0.15 of its potential returns per unit of risk. Mingchen Health Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,488 in Mingchen Health Co on September 1, 2024 and sell it today you would earn a total of 55.00 from holding Mingchen Health Co or generate 3.7% 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. Mingchen Health Co
Performance |
| Timeline |
| China Petroleum Chemical |
| Mingchen Health |
China Petroleum and Mingchen Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Mingchen Health
The main advantage of trading using opposite China Petroleum and Mingchen Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Mingchen Health 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 Mingchen Health will offset losses from the drop in Mingchen Health's long position.| China Petroleum vs. Shanghai Material Trading | China Petroleum vs. Dazhong Transportation Group | China Petroleum vs. Luyin Investment Group | China Petroleum vs. Hubeiyichang Transportation Group |
| Mingchen Health vs. Industrial and Commercial | Mingchen Health vs. Kweichow Moutai Co | Mingchen Health vs. Agricultural Bank of | Mingchen Health vs. China Mobile Limited |
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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