Correlation Between China Petroleum and Hithink RoyalFlush
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By analyzing existing cross correlation between China Petroleum Chemical and Hithink RoyalFlush Info, you can compare the effects of market volatilities on China Petroleum and Hithink RoyalFlush 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 Hithink RoyalFlush. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Hithink RoyalFlush.
Diversification Opportunities for China Petroleum and Hithink RoyalFlush
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Hithink is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Hithink RoyalFlush Info in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hithink RoyalFlush Info 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 Hithink RoyalFlush. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hithink RoyalFlush Info has no effect on the direction of China Petroleum i.e., China Petroleum and Hithink RoyalFlush go up and down completely randomly.
Pair Corralation between China Petroleum and Hithink RoyalFlush
Assuming the 90 days trading horizon China Petroleum is expected to generate 3.62 times less return on investment than Hithink RoyalFlush. But when comparing it to its historical volatility, China Petroleum Chemical is 2.66 times less risky than Hithink RoyalFlush. It trades about 0.05 of its potential returns per unit of risk. Hithink RoyalFlush Info is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 10,146 in Hithink RoyalFlush Info on August 25, 2024 and sell it today you would earn a total of 17,813 from holding Hithink RoyalFlush Info or generate 175.57% 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. Hithink RoyalFlush Info
Performance |
| Timeline |
| China Petroleum Chemical |
| Hithink RoyalFlush Info |
China Petroleum and Hithink RoyalFlush Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Hithink RoyalFlush
The main advantage of trading using opposite China Petroleum and Hithink RoyalFlush positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Hithink RoyalFlush 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 Hithink RoyalFlush will offset losses from the drop in Hithink RoyalFlush's long position.| China Petroleum vs. Nantong Haixing Electronics | China Petroleum vs. CITIC Metal Co | China Petroleum vs. Guangzhou Dongfang Hotel | China Petroleum vs. Unigroup Guoxin Microelectronics |
| Hithink RoyalFlush vs. Advanced Technology Materials | Hithink RoyalFlush vs. Chengdu Spaceon Electronics | Hithink RoyalFlush vs. Levima Advanced Materials | Hithink RoyalFlush vs. Huaxia 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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