Correlation Between China Petroleum and Shijiazhuang Tonhe
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Petroleum Chemical and Shijiazhuang Tonhe Electronics, you can compare the effects of market volatilities on China Petroleum and Shijiazhuang Tonhe 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 Shijiazhuang Tonhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Shijiazhuang Tonhe.
Diversification Opportunities for China Petroleum and Shijiazhuang Tonhe
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Shijiazhuang is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Shijiazhuang Tonhe Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shijiazhuang Tonhe 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 Shijiazhuang Tonhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shijiazhuang Tonhe has no effect on the direction of China Petroleum i.e., China Petroleum and Shijiazhuang Tonhe go up and down completely randomly.
Pair Corralation between China Petroleum and Shijiazhuang Tonhe
Assuming the 90 days trading horizon China Petroleum Chemical is expected to under-perform the Shijiazhuang Tonhe. But the stock apears to be less risky and, when comparing its historical volatility, China Petroleum Chemical is 4.66 times less risky than Shijiazhuang Tonhe. The stock trades about -0.29 of its potential returns per unit of risk. The Shijiazhuang Tonhe Electronics is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,717 in Shijiazhuang Tonhe Electronics on October 24, 2024 and sell it today you would earn a total of 130.00 from holding Shijiazhuang Tonhe Electronics or generate 7.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Petroleum Chemical vs. Shijiazhuang Tonhe Electronics
Performance |
| Timeline |
| China Petroleum Chemical |
| Shijiazhuang Tonhe |
China Petroleum and Shijiazhuang Tonhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Shijiazhuang Tonhe
The main advantage of trading using opposite China Petroleum and Shijiazhuang Tonhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Shijiazhuang Tonhe 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 Shijiazhuang Tonhe will offset losses from the drop in Shijiazhuang Tonhe's long position.| China Petroleum vs. Iat Automobile Technology | China Petroleum vs. Dhc Software Co | China Petroleum vs. Digiwin Software Co | China Petroleum vs. YiDong Electronics Technology |
| Shijiazhuang Tonhe vs. PetroChina Co Ltd | Shijiazhuang Tonhe vs. Industrial and Commercial | Shijiazhuang Tonhe vs. China Petroleum Chemical | Shijiazhuang Tonhe vs. China Construction Bank |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Global Correlations Find global opportunities by holding instruments from different markets |