Correlation Between China Petroleum and Yindu Kitchen
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By analyzing existing cross correlation between China Petroleum Chemical and Yindu Kitchen Equipment, you can compare the effects of market volatilities on China Petroleum and Yindu Kitchen 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 Yindu Kitchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Yindu Kitchen.
Diversification Opportunities for China Petroleum and Yindu Kitchen
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and Yindu is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Yindu Kitchen Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yindu Kitchen Equipment 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 Yindu Kitchen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yindu Kitchen Equipment has no effect on the direction of China Petroleum i.e., China Petroleum and Yindu Kitchen go up and down completely randomly.
Pair Corralation between China Petroleum and Yindu Kitchen
Assuming the 90 days trading horizon China Petroleum Chemical is expected to generate 0.75 times more return on investment than Yindu Kitchen. However, China Petroleum Chemical is 1.33 times less risky than Yindu Kitchen. It trades about 0.03 of its potential returns per unit of risk. Yindu Kitchen Equipment is currently generating about 0.0 per unit of risk. If you would invest 548.00 in China Petroleum Chemical on October 27, 2024 and sell it today you would earn a total of 56.00 from holding China Petroleum Chemical or generate 10.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Petroleum Chemical vs. Yindu Kitchen Equipment
Performance |
| Timeline |
| China Petroleum Chemical |
| Yindu Kitchen Equipment |
China Petroleum and Yindu Kitchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Yindu Kitchen
The main advantage of trading using opposite China Petroleum and Yindu Kitchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Yindu Kitchen 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 Yindu Kitchen will offset losses from the drop in Yindu Kitchen's long position.| China Petroleum vs. V V Food | China Petroleum vs. Heren Health Co | China Petroleum vs. Xiwang Foodstuffs Co | China Petroleum vs. Mingchen Health Co |
| Yindu Kitchen vs. Shanghai V Test Semiconductor | Yindu Kitchen vs. CSSC Offshore Marine | Yindu Kitchen vs. Shandong Hongchuang Aluminum | Yindu Kitchen vs. Jiaozuo Wanfang Aluminum |
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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