Correlation Between China Petroleum and Dongguan Aohai
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By analyzing existing cross correlation between China Petroleum Chemical and Dongguan Aohai Technology, you can compare the effects of market volatilities on China Petroleum and Dongguan Aohai 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 Dongguan Aohai. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Dongguan Aohai.
Diversification Opportunities for China Petroleum and Dongguan Aohai
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Dongguan is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Dongguan Aohai Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongguan Aohai Technology 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 Dongguan Aohai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongguan Aohai Technology has no effect on the direction of China Petroleum i.e., China Petroleum and Dongguan Aohai go up and down completely randomly.
Pair Corralation between China Petroleum and Dongguan Aohai
Assuming the 90 days trading horizon China Petroleum Chemical is expected to generate 0.55 times more return on investment than Dongguan Aohai. However, China Petroleum Chemical is 1.83 times less risky than Dongguan Aohai. It trades about 0.05 of its potential returns per unit of risk. Dongguan Aohai Technology is currently generating about 0.02 per unit of risk. If you would invest 433.00 in China Petroleum Chemical on October 25, 2024 and sell it today you would earn a total of 167.00 from holding China Petroleum Chemical or generate 38.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
China Petroleum Chemical vs. Dongguan Aohai Technology
Performance |
| Timeline |
| China Petroleum Chemical |
| Dongguan Aohai Technology |
China Petroleum and Dongguan Aohai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Dongguan Aohai
The main advantage of trading using opposite China Petroleum and Dongguan Aohai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Dongguan Aohai 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 Dongguan Aohai will offset losses from the drop in Dongguan Aohai's long position.| China Petroleum vs. Queclink Wireless Solutions | China Petroleum vs. Masterwork Machinery | China Petroleum vs. Shantui Construction Machinery | China Petroleum vs. State Grid InformationCommunication |
| Dongguan Aohai vs. Huaxia Fund Management | Dongguan Aohai vs. YiDong Electronics Technology | Dongguan Aohai vs. JCHX Mining Management | Dongguan Aohai vs. Cicc Fund Management |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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