Correlation Between China Petroleum and Suzhou SLAC
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By analyzing existing cross correlation between China Petroleum Chemical and Suzhou SLAC Precision, you can compare the effects of market volatilities on China Petroleum and Suzhou SLAC 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 Suzhou SLAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Suzhou SLAC.
Diversification Opportunities for China Petroleum and Suzhou SLAC
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Suzhou is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Suzhou SLAC Precision in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou SLAC Precision 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 Suzhou SLAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou SLAC Precision has no effect on the direction of China Petroleum i.e., China Petroleum and Suzhou SLAC go up and down completely randomly.
Pair Corralation between China Petroleum and Suzhou SLAC
Assuming the 90 days trading horizon China Petroleum is expected to generate 1.93 times less return on investment than Suzhou SLAC. But when comparing it to its historical volatility, China Petroleum Chemical is 6.81 times less risky than Suzhou SLAC. It trades about 0.19 of its potential returns per unit of risk. Suzhou SLAC Precision is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,150 in Suzhou SLAC Precision on September 12, 2024 and sell it today you would earn a total of 42.00 from holding Suzhou SLAC Precision or generate 3.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Petroleum Chemical vs. Suzhou SLAC Precision
Performance |
| Timeline |
| China Petroleum Chemical |
| Suzhou SLAC Precision |
China Petroleum and Suzhou SLAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Suzhou SLAC
The main advantage of trading using opposite China Petroleum and Suzhou SLAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Suzhou SLAC 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 Suzhou SLAC will offset losses from the drop in Suzhou SLAC'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 |
| Suzhou SLAC vs. Kuangda Technology Group | Suzhou SLAC vs. Citic Guoan Wine | Suzhou SLAC vs. Jiujiang Shanshui Technology | Suzhou SLAC vs. Guangzhou KingTeller Technology |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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