Correlation Between China Petroleum and Beijing Bashi
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By analyzing existing cross correlation between China Petroleum Chemical and Beijing Bashi Media, you can compare the effects of market volatilities on China Petroleum and Beijing Bashi 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 Beijing Bashi. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Beijing Bashi.
Diversification Opportunities for China Petroleum and Beijing Bashi
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Beijing is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Beijing Bashi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Bashi Media 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 Beijing Bashi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Bashi Media has no effect on the direction of China Petroleum i.e., China Petroleum and Beijing Bashi go up and down completely randomly.
Pair Corralation between China Petroleum and Beijing Bashi
Assuming the 90 days trading horizon China Petroleum Chemical is expected to generate 0.44 times more return on investment than Beijing Bashi. However, China Petroleum Chemical is 2.29 times less risky than Beijing Bashi. It trades about 0.05 of its potential returns per unit of risk. Beijing Bashi Media is currently generating about 0.01 per unit of risk. If you would invest 548.00 in China Petroleum Chemical on August 29, 2024 and sell it today you would earn a total of 88.00 from holding China Petroleum Chemical or generate 16.06% 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. Beijing Bashi Media
Performance |
| Timeline |
| China Petroleum Chemical |
| Beijing Bashi Media |
China Petroleum and Beijing Bashi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Beijing Bashi
The main advantage of trading using opposite China Petroleum and Beijing Bashi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Beijing Bashi 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 Beijing Bashi will offset losses from the drop in Beijing Bashi'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 |
| Beijing Bashi vs. Peoples Insurance of | Beijing Bashi vs. Chongqing Shunbo Aluminum | Beijing Bashi vs. TongFu Microelectronics Co | Beijing Bashi vs. Shenzhen Clou Electronics |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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