Correlation Between China Petroleum and Hangzhou Coco
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By analyzing existing cross correlation between China Petroleum Chemical and Hangzhou Coco Healthcare, you can compare the effects of market volatilities on China Petroleum and Hangzhou Coco 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 Hangzhou Coco. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Hangzhou Coco.
Diversification Opportunities for China Petroleum and Hangzhou Coco
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Hangzhou is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Hangzhou Coco Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Coco Healthcare 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 Hangzhou Coco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Coco Healthcare has no effect on the direction of China Petroleum i.e., China Petroleum and Hangzhou Coco go up and down completely randomly.
Pair Corralation between China Petroleum and Hangzhou Coco
Assuming the 90 days trading horizon China Petroleum is expected to generate 2.06 times less return on investment than Hangzhou Coco. But when comparing it to its historical volatility, China Petroleum Chemical is 3.51 times less risky than Hangzhou Coco. It trades about 0.24 of its potential returns per unit of risk. Hangzhou Coco Healthcare is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 938.00 in Hangzhou Coco Healthcare on September 13, 2024 and sell it today you would earn a total of 82.00 from holding Hangzhou Coco Healthcare or generate 8.74% 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. Hangzhou Coco Healthcare
Performance |
| Timeline |
| China Petroleum Chemical |
| Hangzhou Coco Healthcare |
China Petroleum and Hangzhou Coco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Hangzhou Coco
The main advantage of trading using opposite China Petroleum and Hangzhou Coco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Hangzhou Coco 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 Hangzhou Coco will offset losses from the drop in Hangzhou Coco's long position.| China Petroleum vs. Qilu Bank Co | China Petroleum vs. Postal Savings Bank | China Petroleum vs. HeNan Splendor Science | China Petroleum vs. Western Mining Co |
| Hangzhou Coco vs. Agricultural Bank of | Hangzhou Coco vs. Industrial and Commercial | Hangzhou Coco vs. Bank of China | Hangzhou Coco vs. PetroChina Co Ltd |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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