Correlation Between China Petroleum and GKHT Medical
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Petroleum Chemical and GKHT Medical Technology, you can compare the effects of market volatilities on China Petroleum and GKHT Medical 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 GKHT Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and GKHT Medical.
Diversification Opportunities for China Petroleum and GKHT Medical
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and GKHT is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and GKHT Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GKHT Medical 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 GKHT Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GKHT Medical Technology has no effect on the direction of China Petroleum i.e., China Petroleum and GKHT Medical go up and down completely randomly.
Pair Corralation between China Petroleum and GKHT Medical
Assuming the 90 days trading horizon China Petroleum Chemical is expected to under-perform the GKHT Medical. But the stock apears to be less risky and, when comparing its historical volatility, China Petroleum Chemical is 2.2 times less risky than GKHT Medical. The stock trades about -0.01 of its potential returns per unit of risk. The GKHT Medical Technology is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,251 in GKHT Medical Technology on August 28, 2024 and sell it today you would lose (91.00) from holding GKHT Medical Technology or give up 7.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Petroleum Chemical vs. GKHT Medical Technology
Performance |
| Timeline |
| China Petroleum Chemical |
| GKHT Medical Technology |
China Petroleum and GKHT Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and GKHT Medical
The main advantage of trading using opposite China Petroleum and GKHT Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, GKHT Medical 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 GKHT Medical will offset losses from the drop in GKHT Medical's long position.| China Petroleum vs. Hefei Metalforming Mach | China Petroleum vs. Xinjiang Baodi Mining | China Petroleum vs. Guangdong Jingyi Metal | China Petroleum vs. Hainan Mining Co |
| GKHT Medical vs. Bank of China | GKHT Medical vs. Kweichow Moutai Co | GKHT Medical vs. PetroChina Co Ltd | GKHT Medical vs. Bank of Communications |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |