Correlation Between China Petroleum and Sunny Loan
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By analyzing existing cross correlation between China Petroleum Chemical and Sunny Loan Top, you can compare the effects of market volatilities on China Petroleum and Sunny Loan 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 Sunny Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Sunny Loan.
Diversification Opportunities for China Petroleum and Sunny Loan
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Sunny is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Sunny Loan Top in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunny Loan Top 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 Sunny Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunny Loan Top has no effect on the direction of China Petroleum i.e., China Petroleum and Sunny Loan go up and down completely randomly.
Pair Corralation between China Petroleum and Sunny Loan
Assuming the 90 days trading horizon China Petroleum Chemical is expected to under-perform the Sunny Loan. But the stock apears to be less risky and, when comparing its historical volatility, China Petroleum Chemical is 3.29 times less risky than Sunny Loan. The stock trades about -0.15 of its potential returns per unit of risk. The Sunny Loan Top is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,063 in Sunny Loan Top on August 24, 2024 and sell it today you would lose (16.00) from holding Sunny Loan Top or give up 1.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Petroleum Chemical vs. Sunny Loan Top
Performance |
| Timeline |
| China Petroleum Chemical |
| Sunny Loan Top |
China Petroleum and Sunny Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Sunny Loan
The main advantage of trading using opposite China Petroleum and Sunny Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Sunny Loan 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 Sunny Loan will offset losses from the drop in Sunny Loan's long position.| China Petroleum vs. Dymatic Chemicals | China Petroleum vs. Shandong Ruifeng Chemical | China Petroleum vs. Liuzhou Chemical Industry | China Petroleum vs. Shanghai Yaoji Playing |
| Sunny Loan vs. Shandong Longquan Pipeline | Sunny Loan vs. Holitech Technology Co | Sunny Loan vs. Keli Sensing Technology | Sunny Loan vs. Jiujiang Shanshui Technology |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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