Correlation Between China Petroleum and Xinjiang Tianrun
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By analyzing existing cross correlation between China Petroleum Chemical and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on China Petroleum and Xinjiang Tianrun 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 Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Xinjiang Tianrun.
Diversification Opportunities for China Petroleum and Xinjiang Tianrun
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Xinjiang is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Xinjiang Tianrun Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianrun Dairy 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 Xinjiang Tianrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianrun Dairy has no effect on the direction of China Petroleum i.e., China Petroleum and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between China Petroleum and Xinjiang Tianrun
Assuming the 90 days trading horizon China Petroleum Chemical is expected to generate 0.77 times more return on investment than Xinjiang Tianrun. However, China Petroleum Chemical is 1.3 times less risky than Xinjiang Tianrun. It trades about 0.06 of its potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about -0.03 per unit of risk. If you would invest 421.00 in China Petroleum Chemical on September 13, 2024 and sell it today you would earn a total of 223.00 from holding China Petroleum Chemical or generate 52.97% 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. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| China Petroleum Chemical |
| Xinjiang Tianrun Dairy |
China Petroleum and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Xinjiang Tianrun
The main advantage of trading using opposite China Petroleum and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Xinjiang Tianrun 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 Xinjiang Tianrun will offset losses from the drop in Xinjiang Tianrun's long position.| China Petroleum vs. Shanghai Metersbonwe FashionAccessories | China Petroleum vs. China Sports Industry | China Petroleum vs. Zhongshan Broad Ocean Motor | China Petroleum vs. Sichuan Fulin Transportation |
| Xinjiang Tianrun vs. Agricultural Bank of | Xinjiang Tianrun vs. Industrial and Commercial | Xinjiang Tianrun vs. Bank of China | Xinjiang Tianrun vs. PetroChina Co Ltd |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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