Correlation Between China Petroleum and Xingguang Agricultural
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By analyzing existing cross correlation between China Petroleum Chemical and Xingguang Agricultural Mach, you can compare the effects of market volatilities on China Petroleum and Xingguang Agricultural 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 Xingguang Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Xingguang Agricultural.
Diversification Opportunities for China Petroleum and Xingguang Agricultural
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and Xingguang is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Xingguang Agricultural Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xingguang Agricultural 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 Xingguang Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xingguang Agricultural has no effect on the direction of China Petroleum i.e., China Petroleum and Xingguang Agricultural go up and down completely randomly.
Pair Corralation between China Petroleum and Xingguang Agricultural
Assuming the 90 days trading horizon China Petroleum Chemical is expected to generate 0.27 times more return on investment than Xingguang Agricultural. However, China Petroleum Chemical is 3.69 times less risky than Xingguang Agricultural. It trades about -0.41 of its potential returns per unit of risk. Xingguang Agricultural Mach is currently generating about -0.34 per unit of risk. If you would invest 656.00 in China Petroleum Chemical on November 3, 2024 and sell it today you would lose (48.00) from holding China Petroleum Chemical or give up 7.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Petroleum Chemical vs. Xingguang Agricultural Mach
Performance |
| Timeline |
| China Petroleum Chemical |
| Xingguang Agricultural |
China Petroleum and Xingguang Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Xingguang Agricultural
The main advantage of trading using opposite China Petroleum and Xingguang Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Xingguang Agricultural 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 Xingguang Agricultural will offset losses from the drop in Xingguang Agricultural's long position.| China Petroleum vs. Shenzhen AV Display Co | China Petroleum vs. Xiamen Goldenhome Co | China Petroleum vs. Zhangjiagang Elegant Home | China Petroleum vs. Bomesc Offshore Engineering |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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