Correlation Between China Petroleum and Shenzhen Bioeasy
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By analyzing existing cross correlation between China Petroleum Chemical and Shenzhen Bioeasy Biotechnology, you can compare the effects of market volatilities on China Petroleum and Shenzhen Bioeasy 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 Bioeasy. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Shenzhen Bioeasy.
Diversification Opportunities for China Petroleum and Shenzhen Bioeasy
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Shenzhen is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Shenzhen Bioeasy Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Bioeasy Bio 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 Bioeasy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Bioeasy Bio has no effect on the direction of China Petroleum i.e., China Petroleum and Shenzhen Bioeasy go up and down completely randomly.
Pair Corralation between China Petroleum and Shenzhen Bioeasy
Assuming the 90 days trading horizon China Petroleum Chemical is expected to under-perform the Shenzhen Bioeasy. But the stock apears to be less risky and, when comparing its historical volatility, China Petroleum Chemical is 2.58 times less risky than Shenzhen Bioeasy. The stock trades about -0.03 of its potential returns per unit of risk. The Shenzhen Bioeasy Biotechnology is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 666.00 in Shenzhen Bioeasy Biotechnology on September 3, 2024 and sell it today you would earn a total of 322.00 from holding Shenzhen Bioeasy Biotechnology or generate 48.35% 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 Bioeasy Biotechnology
Performance |
| Timeline |
| China Petroleum Chemical |
| Shenzhen Bioeasy Bio |
China Petroleum and Shenzhen Bioeasy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Shenzhen Bioeasy
The main advantage of trading using opposite China Petroleum and Shenzhen Bioeasy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Shenzhen Bioeasy 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 Bioeasy will offset losses from the drop in Shenzhen Bioeasy's long position.| China Petroleum vs. Eastern Air Logistics | China Petroleum vs. Ningbo Fangzheng Automobile | China Petroleum vs. Xinhua Winshare Publishing | China Petroleum vs. Jiangsu Phoenix Publishing |
| Shenzhen Bioeasy vs. Chengdu Kanghua Biological | Shenzhen Bioeasy vs. Beijing Wantai Biological | Shenzhen Bioeasy vs. Suzhou Novoprotein Scientific | Shenzhen Bioeasy vs. Aluminum Corp of |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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