Correlation Between China Petroleum and Guangdong Sanhe
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By analyzing existing cross correlation between China Petroleum Chemical and Guangdong Sanhe Pile, you can compare the effects of market volatilities on China Petroleum and Guangdong Sanhe 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 Guangdong Sanhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Guangdong Sanhe.
Diversification Opportunities for China Petroleum and Guangdong Sanhe
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Guangdong is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Guangdong Sanhe Pile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Sanhe Pile 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 Guangdong Sanhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Sanhe Pile has no effect on the direction of China Petroleum i.e., China Petroleum and Guangdong Sanhe go up and down completely randomly.
Pair Corralation between China Petroleum and Guangdong Sanhe
Assuming the 90 days trading horizon China Petroleum Chemical is expected to generate 0.56 times more return on investment than Guangdong Sanhe. However, China Petroleum Chemical is 1.8 times less risky than Guangdong Sanhe. It trades about 0.01 of its potential returns per unit of risk. Guangdong Sanhe Pile is currently generating about -0.04 per unit of risk. If you would invest 637.00 in China Petroleum Chemical on September 12, 2024 and sell it today you would earn a total of 7.00 from holding China Petroleum Chemical or generate 1.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.71% |
| Values | Daily Returns |
China Petroleum Chemical vs. Guangdong Sanhe Pile
Performance |
| Timeline |
| China Petroleum Chemical |
| Guangdong Sanhe Pile |
China Petroleum and Guangdong Sanhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Guangdong Sanhe
The main advantage of trading using opposite China Petroleum and Guangdong Sanhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Guangdong Sanhe 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 Guangdong Sanhe will offset losses from the drop in Guangdong Sanhe'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 |
| Guangdong Sanhe vs. North Huajin Chemical | Guangdong Sanhe vs. Guangzhou Jointas Chemical | Guangdong Sanhe vs. Gan Yuan Foods | Guangdong Sanhe vs. Muyuan Foodstuff Co |
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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