Correlation Between China Petroleum and Guilin Seamild
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By analyzing existing cross correlation between China Petroleum Chemical and Guilin Seamild Foods, you can compare the effects of market volatilities on China Petroleum and Guilin Seamild 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 Guilin Seamild. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Guilin Seamild.
Diversification Opportunities for China Petroleum and Guilin Seamild
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Guilin is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Guilin Seamild Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guilin Seamild Foods 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 Guilin Seamild. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guilin Seamild Foods has no effect on the direction of China Petroleum i.e., China Petroleum and Guilin Seamild go up and down completely randomly.
Pair Corralation between China Petroleum and Guilin Seamild
Assuming the 90 days trading horizon China Petroleum Chemical is expected to generate 0.7 times more return on investment than Guilin Seamild. However, China Petroleum Chemical is 1.43 times less risky than Guilin Seamild. It trades about 0.06 of its potential returns per unit of risk. Guilin Seamild Foods is currently generating about 0.02 per unit of risk. If you would invest 423.00 in China Petroleum Chemical on September 12, 2024 and sell it today you would earn a total of 221.00 from holding China Petroleum Chemical or generate 52.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Petroleum Chemical vs. Guilin Seamild Foods
Performance |
| Timeline |
| China Petroleum Chemical |
| Guilin Seamild Foods |
China Petroleum and Guilin Seamild Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Guilin Seamild
The main advantage of trading using opposite China Petroleum and Guilin Seamild positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Guilin Seamild 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 Guilin Seamild will offset losses from the drop in Guilin Seamild'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 |
| Guilin Seamild vs. China Petroleum Chemical | Guilin Seamild vs. PetroChina Co Ltd | Guilin Seamild vs. China State Construction | Guilin Seamild 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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