Correlation Between China Petroleum and Gansu Yasheng
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By analyzing existing cross correlation between China Petroleum Chemical and Gansu Yasheng Industrial, you can compare the effects of market volatilities on China Petroleum and Gansu Yasheng 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 Gansu Yasheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Gansu Yasheng.
Diversification Opportunities for China Petroleum and Gansu Yasheng
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Gansu is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Gansu Yasheng Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Yasheng Industrial 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 Gansu Yasheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Yasheng Industrial has no effect on the direction of China Petroleum i.e., China Petroleum and Gansu Yasheng go up and down completely randomly.
Pair Corralation between China Petroleum and Gansu Yasheng
Assuming the 90 days trading horizon China Petroleum Chemical is expected to under-perform the Gansu Yasheng. But the stock apears to be less risky and, when comparing its historical volatility, China Petroleum Chemical is 2.07 times less risky than Gansu Yasheng. The stock trades about -0.44 of its potential returns per unit of risk. The Gansu Yasheng Industrial is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 280.00 in Gansu Yasheng Industrial on November 28, 2024 and sell it today you would earn a total of 1.00 from holding Gansu Yasheng Industrial or generate 0.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Petroleum Chemical vs. Gansu Yasheng Industrial
Performance |
| Timeline |
| China Petroleum Chemical |
| Gansu Yasheng Industrial |
China Petroleum and Gansu Yasheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Gansu Yasheng
The main advantage of trading using opposite China Petroleum and Gansu Yasheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Gansu Yasheng 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 Gansu Yasheng will offset losses from the drop in Gansu Yasheng's long position.| China Petroleum vs. Guolin Environmental Tech | China Petroleum vs. Konfoong Materials International | China Petroleum vs. Advanced Technology Materials | China Petroleum vs. Suzhou Xingye Material |
| Gansu Yasheng vs. Kidswant Children Products | Gansu Yasheng vs. Suzhou Douson Drilling | Gansu Yasheng vs. Shaanxi Meineng Clean | Gansu Yasheng vs. Shandong Longquan Pipeline |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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