Correlation Between China Petroleum and VT Industrial
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By analyzing existing cross correlation between China Petroleum Chemical and VT Industrial Technology, you can compare the effects of market volatilities on China Petroleum and VT Industrial 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 VT Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and VT Industrial.
Diversification Opportunities for China Petroleum and VT Industrial
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and 300707 is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and VT Industrial Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VT Industrial Technology 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 VT Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VT Industrial Technology has no effect on the direction of China Petroleum i.e., China Petroleum and VT Industrial go up and down completely randomly.
Pair Corralation between China Petroleum and VT Industrial
Assuming the 90 days trading horizon China Petroleum Chemical is expected to generate 0.42 times more return on investment than VT Industrial. However, China Petroleum Chemical is 2.38 times less risky than VT Industrial. It trades about 0.06 of its potential returns per unit of risk. VT Industrial Technology is currently generating about 0.02 per unit of risk. If you would invest 432.00 in China Petroleum Chemical on September 4, 2024 and sell it today you would earn a total of 199.00 from holding China Petroleum Chemical or generate 46.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Petroleum Chemical vs. VT Industrial Technology
Performance |
| Timeline |
| China Petroleum Chemical |
| VT Industrial Technology |
China Petroleum and VT Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and VT Industrial
The main advantage of trading using opposite China Petroleum and VT Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, VT Industrial 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 VT Industrial will offset losses from the drop in VT Industrial's long position.| China Petroleum vs. Jointo Energy Investment | China Petroleum vs. Jilin Jlu Communication | China Petroleum vs. Shenzhen Centralcon Investment | China Petroleum vs. Beijing Mainstreets Investment |
| VT Industrial vs. Zoy Home Furnishing | VT Industrial vs. Hunan Mendale Hometextile | VT Industrial vs. UE Furniture Co | VT Industrial vs. Sinosteel Luonai Materials |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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