Correlation Between China Petroleum and Shengyi Technology
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By analyzing existing cross correlation between China Petroleum Chemical and Shengyi Technology Co, you can compare the effects of market volatilities on China Petroleum and Shengyi Technology 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 Shengyi Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Shengyi Technology.
Diversification Opportunities for China Petroleum and Shengyi Technology
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Shengyi is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Shengyi Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengyi 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 Shengyi Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengyi Technology has no effect on the direction of China Petroleum i.e., China Petroleum and Shengyi Technology go up and down completely randomly.
Pair Corralation between China Petroleum and Shengyi Technology
Assuming the 90 days trading horizon China Petroleum is expected to generate 1.0 times less return on investment than Shengyi Technology. But when comparing it to its historical volatility, China Petroleum Chemical is 2.64 times less risky than Shengyi Technology. It trades about 0.15 of its potential returns per unit of risk. Shengyi Technology Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,056 in Shengyi Technology Co on September 1, 2024 and sell it today you would earn a total of 50.00 from holding Shengyi Technology Co or generate 2.43% 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. Shengyi Technology Co
Performance |
| Timeline |
| China Petroleum Chemical |
| Shengyi Technology |
China Petroleum and Shengyi Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Shengyi Technology
The main advantage of trading using opposite China Petroleum and Shengyi Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Shengyi Technology 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 Shengyi Technology will offset losses from the drop in Shengyi Technology's long position.| China Petroleum vs. Shanghai Material Trading | China Petroleum vs. Dazhong Transportation Group | China Petroleum vs. Luyin Investment Group | China Petroleum vs. Hubeiyichang Transportation Group |
| Shengyi Technology vs. HUAQIN TECHNOLOGY LTD | Shengyi Technology vs. Western Superconducting Tech | Shengyi Technology vs. Keli Sensing Technology | Shengyi Technology vs. CITIC Guoan Information |
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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