Correlation Between China Petroleum and Ningbo Boway
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By analyzing existing cross correlation between China Petroleum Chemical and Ningbo Boway Alloy, you can compare the effects of market volatilities on China Petroleum and Ningbo Boway 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 Ningbo Boway. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Ningbo Boway.
Diversification Opportunities for China Petroleum and Ningbo Boway
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Ningbo is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Ningbo Boway Alloy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Boway Alloy 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 Ningbo Boway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Boway Alloy has no effect on the direction of China Petroleum i.e., China Petroleum and Ningbo Boway go up and down completely randomly.
Pair Corralation between China Petroleum and Ningbo Boway
Assuming the 90 days trading horizon China Petroleum Chemical is expected to generate 0.71 times more return on investment than Ningbo Boway. However, China Petroleum Chemical is 1.41 times less risky than Ningbo Boway. It trades about 0.25 of its potential returns per unit of risk. Ningbo Boway Alloy is currently generating about 0.11 per unit of risk. If you would invest 636.00 in China Petroleum Chemical on September 27, 2024 and sell it today you would earn a total of 40.00 from holding China Petroleum Chemical or generate 6.29% 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. Ningbo Boway Alloy
Performance |
| Timeline |
| China Petroleum Chemical |
| Ningbo Boway Alloy |
China Petroleum and Ningbo Boway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Ningbo Boway
The main advantage of trading using opposite China Petroleum and Ningbo Boway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Ningbo Boway 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 Ningbo Boway will offset losses from the drop in Ningbo Boway's long position.| China Petroleum vs. Suofeiya Home Collection | China Petroleum vs. Gem Year Industrial Co | China Petroleum vs. Anhui Gujing Distillery | China Petroleum vs. Universal Scientific Industrial |
| Ningbo Boway vs. Zijin Mining Group | Ningbo Boway vs. Wanhua Chemical Group | Ningbo Boway vs. Baoshan Iron Steel | Ningbo Boway vs. Shandong Gold Mining |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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