Correlation Between China Petroleum and Sino Wealth
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By analyzing existing cross correlation between China Petroleum Chemical and Sino Wealth Electronic, you can compare the effects of market volatilities on China Petroleum and Sino Wealth 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 Sino Wealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Sino Wealth.
Diversification Opportunities for China Petroleum and Sino Wealth
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Sino is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Sino Wealth Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino Wealth Electronic 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 Sino Wealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino Wealth Electronic has no effect on the direction of China Petroleum i.e., China Petroleum and Sino Wealth go up and down completely randomly.
Pair Corralation between China Petroleum and Sino Wealth
Assuming the 90 days trading horizon China Petroleum Chemical is expected to generate 0.31 times more return on investment than Sino Wealth. However, China Petroleum Chemical is 3.18 times less risky than Sino Wealth. It trades about -0.04 of its potential returns per unit of risk. Sino Wealth Electronic is currently generating about -0.07 per unit of risk. If you would invest 644.00 in China Petroleum Chemical on August 29, 2024 and sell it today you would lose (8.00) from holding China Petroleum Chemical or give up 1.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Petroleum Chemical vs. Sino Wealth Electronic
Performance |
| Timeline |
| China Petroleum Chemical |
| Sino Wealth Electronic |
China Petroleum and Sino Wealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Sino Wealth
The main advantage of trading using opposite China Petroleum and Sino Wealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Sino Wealth 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 Sino Wealth will offset losses from the drop in Sino Wealth's long position.| China Petroleum vs. Hefei Metalforming Mach | China Petroleum vs. Xinjiang Baodi Mining | China Petroleum vs. Guangdong Jingyi Metal | China Petroleum vs. Hainan Mining Co |
| Sino Wealth vs. Lutian Machinery Co | Sino Wealth vs. China Longyuan Power | Sino Wealth vs. Changshu Tongrun Auto | Sino Wealth vs. PetroChina Co Ltd |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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