Correlation Between China Petroleum and Fujian Anjoy
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By analyzing existing cross correlation between China Petroleum Chemical and Fujian Anjoy Foods, you can compare the effects of market volatilities on China Petroleum and Fujian Anjoy 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 Fujian Anjoy. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Fujian Anjoy.
Diversification Opportunities for China Petroleum and Fujian Anjoy
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Fujian is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Fujian Anjoy Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Anjoy Foods 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 Fujian Anjoy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Anjoy Foods has no effect on the direction of China Petroleum i.e., China Petroleum and Fujian Anjoy go up and down completely randomly.
Pair Corralation between China Petroleum and Fujian Anjoy
Assuming the 90 days trading horizon China Petroleum Chemical is expected to generate 0.34 times more return on investment than Fujian Anjoy. However, China Petroleum Chemical is 2.98 times less risky than Fujian Anjoy. It trades about 0.23 of its potential returns per unit of risk. Fujian Anjoy Foods is currently generating about -0.05 per unit of risk. If you would invest 618.00 in China Petroleum Chemical on September 13, 2024 and sell it today you would earn a total of 26.00 from holding China Petroleum Chemical or generate 4.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Petroleum Chemical vs. Fujian Anjoy Foods
Performance |
| Timeline |
| China Petroleum Chemical |
| Fujian Anjoy Foods |
China Petroleum and Fujian Anjoy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Fujian Anjoy
The main advantage of trading using opposite China Petroleum and Fujian Anjoy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Fujian Anjoy 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 Fujian Anjoy will offset losses from the drop in Fujian Anjoy'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 |
| Fujian Anjoy vs. Nanjing Putian Telecommunications | Fujian Anjoy vs. Tianjin Realty Development | Fujian Anjoy vs. Kangyue Technology Co | Fujian Anjoy vs. Shenzhen Hifuture Electric |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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