Correlation Between China Petroleum and Chahua Modern
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By analyzing existing cross correlation between China Petroleum Chemical and Chahua Modern Housewares, you can compare the effects of market volatilities on China Petroleum and Chahua Modern 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 Chahua Modern. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Chahua Modern.
Diversification Opportunities for China Petroleum and Chahua Modern
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between China and Chahua is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Chahua Modern Housewares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chahua Modern Housewares 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 Chahua Modern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chahua Modern Housewares has no effect on the direction of China Petroleum i.e., China Petroleum and Chahua Modern go up and down completely randomly.
Pair Corralation between China Petroleum and Chahua Modern
Assuming the 90 days trading horizon China Petroleum Chemical is expected to under-perform the Chahua Modern. But the stock apears to be less risky and, when comparing its historical volatility, China Petroleum Chemical is 2.85 times less risky than Chahua Modern. The stock trades about -0.1 of its potential returns per unit of risk. The Chahua Modern Housewares is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,049 in Chahua Modern Housewares on October 18, 2024 and sell it today you would earn a total of 62.00 from holding Chahua Modern Housewares or generate 3.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Petroleum Chemical vs. Chahua Modern Housewares
Performance |
| Timeline |
| China Petroleum Chemical |
| Chahua Modern Housewares |
China Petroleum and Chahua Modern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Chahua Modern
The main advantage of trading using opposite China Petroleum and Chahua Modern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Chahua Modern 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 Chahua Modern will offset losses from the drop in Chahua Modern's long position.| China Petroleum vs. Pengxin International Mining | China Petroleum vs. Tianjin Silvery Dragon | China Petroleum vs. Zijin Mining Group | China Petroleum vs. Eastroc Beverage Group |
| Chahua Modern vs. Sichuan Hebang Biotechnology | Chahua Modern vs. Shaanxi Meineng Clean | Chahua Modern vs. Keda Clean Energy | Chahua Modern vs. Fujian Wanchen Biotechnology |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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