Correlation Between China Petroleum and Guangdong Wens
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By analyzing existing cross correlation between China Petroleum Chemical and Guangdong Wens Foodstuff, you can compare the effects of market volatilities on China Petroleum and Guangdong Wens 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 Guangdong Wens. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Guangdong Wens.
Diversification Opportunities for China Petroleum and Guangdong Wens
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and Guangdong is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Guangdong Wens Foodstuff in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Wens Foodstuff 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 Guangdong Wens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Wens Foodstuff has no effect on the direction of China Petroleum i.e., China Petroleum and Guangdong Wens go up and down completely randomly.
Pair Corralation between China Petroleum and Guangdong Wens
Assuming the 90 days trading horizon China Petroleum Chemical is expected to generate 0.79 times more return on investment than Guangdong Wens. However, China Petroleum Chemical is 1.26 times less risky than Guangdong Wens. It trades about 0.01 of its potential returns per unit of risk. Guangdong Wens Foodstuff is currently generating about 0.0 per unit of risk. If you would invest 637.00 in China Petroleum Chemical on September 12, 2024 and sell it today you would earn a total of 7.00 from holding China Petroleum Chemical or generate 1.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Petroleum Chemical vs. Guangdong Wens Foodstuff
Performance |
| Timeline |
| China Petroleum Chemical |
| Guangdong Wens Foodstuff |
China Petroleum and Guangdong Wens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Guangdong Wens
The main advantage of trading using opposite China Petroleum and Guangdong Wens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Guangdong Wens 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 Guangdong Wens will offset losses from the drop in Guangdong Wens' 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 |
| Guangdong Wens vs. China Petroleum Chemical | Guangdong Wens vs. PetroChina Co Ltd | Guangdong Wens vs. China State Construction | Guangdong Wens vs. China Railway Group |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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