Correlation Between China Petroleum and Chongqing Sulian
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By analyzing existing cross correlation between China Petroleum Chemical and Chongqing Sulian Plastic, you can compare the effects of market volatilities on China Petroleum and Chongqing Sulian 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 Chongqing Sulian. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Chongqing Sulian.
Diversification Opportunities for China Petroleum and Chongqing Sulian
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Chongqing is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Chongqing Sulian Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Sulian Plastic 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 Chongqing Sulian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Sulian Plastic has no effect on the direction of China Petroleum i.e., China Petroleum and Chongqing Sulian go up and down completely randomly.
Pair Corralation between China Petroleum and Chongqing Sulian
Assuming the 90 days trading horizon China Petroleum is expected to generate 9.93 times less return on investment than Chongqing Sulian. But when comparing it to its historical volatility, China Petroleum Chemical is 2.03 times less risky than Chongqing Sulian. It trades about 0.01 of its potential returns per unit of risk. Chongqing Sulian Plastic is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,469 in Chongqing Sulian Plastic on September 4, 2024 and sell it today you would earn a total of 381.00 from holding Chongqing Sulian Plastic or generate 15.43% 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. Chongqing Sulian Plastic
Performance |
| Timeline |
| China Petroleum Chemical |
| Chongqing Sulian Plastic |
China Petroleum and Chongqing Sulian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Chongqing Sulian
The main advantage of trading using opposite China Petroleum and Chongqing Sulian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Chongqing Sulian 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 Chongqing Sulian will offset losses from the drop in Chongqing Sulian'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 |
| Chongqing Sulian vs. Cultural Investment Holdings | Chongqing Sulian vs. Gome Telecom Equipment | Chongqing Sulian vs. Bus Online Co | Chongqing Sulian vs. Holitech Technology Co |
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.
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