Correlation Between China Petroleum and Porton Fine
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By analyzing existing cross correlation between China Petroleum Chemical and Porton Fine Chemicals, you can compare the effects of market volatilities on China Petroleum and Porton Fine 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 Porton Fine. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Porton Fine.
Diversification Opportunities for China Petroleum and Porton Fine
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Porton is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Porton Fine Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Porton Fine Chemicals 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 Porton Fine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Porton Fine Chemicals has no effect on the direction of China Petroleum i.e., China Petroleum and Porton Fine go up and down completely randomly.
Pair Corralation between China Petroleum and Porton Fine
Assuming the 90 days trading horizon China Petroleum Chemical is expected to generate 0.45 times more return on investment than Porton Fine. However, China Petroleum Chemical is 2.21 times less risky than Porton Fine. It trades about 0.01 of its potential returns per unit of risk. Porton Fine Chemicals is currently generating about -0.02 per unit of risk. If you would invest 646.00 in China Petroleum Chemical on August 31, 2024 and sell it today you would lose (10.00) from holding China Petroleum Chemical or give up 1.55% 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. Porton Fine Chemicals
Performance |
| Timeline |
| China Petroleum Chemical |
| Porton Fine Chemicals |
China Petroleum and Porton Fine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Porton Fine
The main advantage of trading using opposite China Petroleum and Porton Fine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Porton Fine 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 Porton Fine will offset losses from the drop in Porton Fine's long position.| China Petroleum vs. Lootom Telcovideo Network | China Petroleum vs. Miracll Chemicals Co | China Petroleum vs. Henan Shuanghui Investment | China Petroleum vs. Do Fluoride Chemicals Co |
| Porton Fine vs. PetroChina Co Ltd | Porton Fine vs. China Mobile Limited | Porton Fine vs. Ping An Insurance | Porton Fine vs. China Petroleum Chemical |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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