Correlation Between China Petroleum and Shenzhen Dynanonic
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By analyzing existing cross correlation between China Petroleum Chemical and Shenzhen Dynanonic Co, you can compare the effects of market volatilities on China Petroleum and Shenzhen Dynanonic 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 Shenzhen Dynanonic. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Shenzhen Dynanonic.
Diversification Opportunities for China Petroleum and Shenzhen Dynanonic
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Shenzhen is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Shenzhen Dynanonic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Dynanonic 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 Shenzhen Dynanonic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Dynanonic has no effect on the direction of China Petroleum i.e., China Petroleum and Shenzhen Dynanonic go up and down completely randomly.
Pair Corralation between China Petroleum and Shenzhen Dynanonic
Assuming the 90 days trading horizon China Petroleum Chemical is expected to generate 0.4 times more return on investment than Shenzhen Dynanonic. However, China Petroleum Chemical is 2.5 times less risky than Shenzhen Dynanonic. It trades about 0.05 of its potential returns per unit of risk. Shenzhen Dynanonic Co is currently generating about -0.06 per unit of risk. If you would invest 438.00 in China Petroleum Chemical on October 16, 2024 and sell it today you would earn a total of 183.00 from holding China Petroleum Chemical or generate 41.78% 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. Shenzhen Dynanonic Co
Performance |
| Timeline |
| China Petroleum Chemical |
| Shenzhen Dynanonic |
China Petroleum and Shenzhen Dynanonic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Shenzhen Dynanonic
The main advantage of trading using opposite China Petroleum and Shenzhen Dynanonic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Shenzhen Dynanonic 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 Shenzhen Dynanonic will offset losses from the drop in Shenzhen Dynanonic's long position.| China Petroleum vs. Jiugui Liquor Co | China Petroleum vs. Bank of Communications | China Petroleum vs. Shenzhen Noposion Agrochemicals | China Petroleum vs. Shandong Rike Chemical |
| Shenzhen Dynanonic vs. Jinling Hotel Corp | Shenzhen Dynanonic vs. Innovative Medical Management | Shenzhen Dynanonic vs. Tinavi Medical Technologies | Shenzhen Dynanonic vs. Hubei Geoway Investment |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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