Correlation Between China Petroleum and Lootom Telcovideo
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By analyzing existing cross correlation between China Petroleum Chemical and Lootom Telcovideo Network, you can compare the effects of market volatilities on China Petroleum and Lootom Telcovideo 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 Lootom Telcovideo. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Lootom Telcovideo.
Diversification Opportunities for China Petroleum and Lootom Telcovideo
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Lootom is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Lootom Telcovideo Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lootom Telcovideo Network 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 Lootom Telcovideo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lootom Telcovideo Network has no effect on the direction of China Petroleum i.e., China Petroleum and Lootom Telcovideo go up and down completely randomly.
Pair Corralation between China Petroleum and Lootom Telcovideo
Assuming the 90 days trading horizon China Petroleum Chemical is expected to generate 0.66 times more return on investment than Lootom Telcovideo. However, China Petroleum Chemical is 1.51 times less risky than Lootom Telcovideo. It trades about 0.06 of its potential returns per unit of risk. Lootom Telcovideo Network is currently generating about 0.04 per unit of risk. If you would invest 424.00 in China Petroleum Chemical on August 31, 2024 and sell it today you would earn a total of 212.00 from holding China Petroleum Chemical or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
China Petroleum Chemical vs. Lootom Telcovideo Network
Performance |
| Timeline |
| China Petroleum Chemical |
| Lootom Telcovideo Network |
China Petroleum and Lootom Telcovideo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Lootom Telcovideo
The main advantage of trading using opposite China Petroleum and Lootom Telcovideo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Lootom Telcovideo 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 Lootom Telcovideo will offset losses from the drop in Lootom Telcovideo'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 |
| Lootom Telcovideo vs. Kweichow Moutai Co | Lootom Telcovideo vs. NAURA Technology Group | Lootom Telcovideo vs. APT Medical | Lootom Telcovideo vs. Contemporary Amperex 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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