Correlation Between China Petroleum and JiShi Media
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By analyzing existing cross correlation between China Petroleum Chemical and JiShi Media Co, you can compare the effects of market volatilities on China Petroleum and JiShi Media 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 JiShi Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and JiShi Media.
Diversification Opportunities for China Petroleum and JiShi Media
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and JiShi is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and JiShi Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JiShi 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 JiShi Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JiShi Media has no effect on the direction of China Petroleum i.e., China Petroleum and JiShi Media go up and down completely randomly.
Pair Corralation between China Petroleum and JiShi Media
Assuming the 90 days trading horizon China Petroleum is expected to generate 2.75 times less return on investment than JiShi Media. But when comparing it to its historical volatility, China Petroleum Chemical is 3.89 times less risky than JiShi Media. It trades about 0.12 of its potential returns per unit of risk. JiShi Media Co is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 177.00 in JiShi Media Co on September 3, 2024 and sell it today you would earn a total of 8.00 from holding JiShi Media Co or generate 4.52% 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. JiShi Media Co
Performance |
| Timeline |
| China Petroleum Chemical |
| JiShi Media |
China Petroleum and JiShi Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and JiShi Media
The main advantage of trading using opposite China Petroleum and JiShi Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, JiShi Media 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 JiShi Media will offset losses from the drop in JiShi Media's long position.| China Petroleum vs. Eastern Air Logistics | China Petroleum vs. Ningbo Fangzheng Automobile | China Petroleum vs. Xinhua Winshare Publishing | China Petroleum vs. Jiangsu Phoenix Publishing |
| JiShi Media vs. Gansu Jiu Steel | JiShi Media vs. Ming Yang Smart | JiShi Media vs. Aba Chemicals Corp | JiShi Media vs. Loctek Ergonomic 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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