Correlation Between China Petroleum and Markor International
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By analyzing existing cross correlation between China Petroleum Chemical and Markor International Home, you can compare the effects of market volatilities on China Petroleum and Markor International 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 Markor International. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Markor International.
Diversification Opportunities for China Petroleum and Markor International
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Markor is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Markor International Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Markor International Home 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 Markor International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Markor International Home has no effect on the direction of China Petroleum i.e., China Petroleum and Markor International go up and down completely randomly.
Pair Corralation between China Petroleum and Markor International
Assuming the 90 days trading horizon China Petroleum Chemical is expected to generate 0.61 times more return on investment than Markor International. However, China Petroleum Chemical is 1.64 times less risky than Markor International. It trades about 0.06 of its potential returns per unit of risk. Markor International Home is currently generating about -0.02 per unit of risk. If you would invest 437.00 in China Petroleum Chemical on August 30, 2024 and sell it today you would earn a total of 201.00 from holding China Petroleum Chemical or generate 46.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Petroleum Chemical vs. Markor International Home
Performance |
| Timeline |
| China Petroleum Chemical |
| Markor International Home |
China Petroleum and Markor International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Markor International
The main advantage of trading using opposite China Petroleum and Markor International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Markor International 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 Markor International will offset losses from the drop in Markor International's long position.| China Petroleum vs. Anhui Huilong Agricultural | China Petroleum vs. Chinese Universe Publishing | China Petroleum vs. Shanghai Action Education | China Petroleum vs. Time Publishing and |
| Markor International vs. Shanghai Yaoji Playing | Markor International vs. YLZ Information Tech | Markor International vs. Longmaster Information Tech | Markor International vs. Beijing Jiaman Dress |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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