Correlation Between China Petroleum and Ningxia Xiaoming
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By analyzing existing cross correlation between China Petroleum Chemical and Ningxia Xiaoming Agriculture, you can compare the effects of market volatilities on China Petroleum and Ningxia Xiaoming 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 Ningxia Xiaoming. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Ningxia Xiaoming.
Diversification Opportunities for China Petroleum and Ningxia Xiaoming
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Ningxia is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Ningxia Xiaoming Agriculture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningxia Xiaoming Agr 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 Ningxia Xiaoming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningxia Xiaoming Agr has no effect on the direction of China Petroleum i.e., China Petroleum and Ningxia Xiaoming go up and down completely randomly.
Pair Corralation between China Petroleum and Ningxia Xiaoming
Assuming the 90 days trading horizon China Petroleum is expected to generate 7.05 times less return on investment than Ningxia Xiaoming. But when comparing it to its historical volatility, China Petroleum Chemical is 3.55 times less risky than Ningxia Xiaoming. It trades about 0.07 of its potential returns per unit of risk. Ningxia Xiaoming Agriculture is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,252 in Ningxia Xiaoming Agriculture on September 4, 2024 and sell it today you would earn a total of 97.00 from holding Ningxia Xiaoming Agriculture or generate 7.75% 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. Ningxia Xiaoming Agriculture
Performance |
| Timeline |
| China Petroleum Chemical |
| Ningxia Xiaoming Agr |
China Petroleum and Ningxia Xiaoming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Ningxia Xiaoming
The main advantage of trading using opposite China Petroleum and Ningxia Xiaoming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Ningxia Xiaoming 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 Ningxia Xiaoming will offset losses from the drop in Ningxia Xiaoming'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 |
| Ningxia Xiaoming vs. Agricultural Bank of | Ningxia Xiaoming vs. Industrial and Commercial | Ningxia Xiaoming vs. Bank of China | Ningxia Xiaoming vs. China Construction Bank |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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