Correlation Between China Petroleum and Elite Color
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By analyzing existing cross correlation between China Petroleum Chemical and Elite Color Environmental, you can compare the effects of market volatilities on China Petroleum and Elite Color 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 Elite Color. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Elite Color.
Diversification Opportunities for China Petroleum and Elite Color
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Elite is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Elite Color Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elite Color Environmental 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 Elite Color. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elite Color Environmental has no effect on the direction of China Petroleum i.e., China Petroleum and Elite Color go up and down completely randomly.
Pair Corralation between China Petroleum and Elite Color
Assuming the 90 days trading horizon China Petroleum is expected to generate 1.8 times less return on investment than Elite Color. But when comparing it to its historical volatility, China Petroleum Chemical is 1.57 times less risky than Elite Color. It trades about 0.0 of its potential returns per unit of risk. Elite Color Environmental is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 700.00 in Elite Color Environmental on August 29, 2024 and sell it today you would lose (41.00) from holding Elite Color Environmental or give up 5.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Petroleum Chemical vs. Elite Color Environmental
Performance |
| Timeline |
| China Petroleum Chemical |
| Elite Color Environmental |
China Petroleum and Elite Color Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Elite Color
The main advantage of trading using opposite China Petroleum and Elite Color positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Elite Color 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 Elite Color will offset losses from the drop in Elite Color's long position.| China Petroleum vs. Anhui Huilong Agricultural | China Petroleum vs. Chinese Universe Publishing | China Petroleum vs. Shanghai Action Education | China Petroleum vs. Time Publishing and |
| Elite Color vs. Shandong Gold Mining | Elite Color vs. Rongsheng Petrochemical Co | Elite Color vs. Inner Mongolia BaoTou | Elite Color vs. Jiangxi Ganfeng Lithium |
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 Stocks Directory module to find actively traded stocks across global markets.
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