Correlation Between China Petroleum and Guangdong Marubi
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By analyzing existing cross correlation between China Petroleum Chemical and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on China Petroleum and Guangdong Marubi 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 Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Guangdong Marubi.
Diversification Opportunities for China Petroleum and Guangdong Marubi
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Guangdong is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Guangdong Marubi Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Marubi Bio 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 Guangdong Marubi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Marubi Bio has no effect on the direction of China Petroleum i.e., China Petroleum and Guangdong Marubi go up and down completely randomly.
Pair Corralation between China Petroleum and Guangdong Marubi
Assuming the 90 days trading horizon China Petroleum Chemical is expected to generate 0.65 times more return on investment than Guangdong Marubi. However, China Petroleum Chemical is 1.53 times less risky than Guangdong Marubi. It trades about 0.06 of its potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about 0.01 per unit of risk. If you would invest 423.00 in China Petroleum Chemical on September 12, 2024 and sell it today you would earn a total of 221.00 from holding China Petroleum Chemical or generate 52.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Petroleum Chemical vs. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| China Petroleum Chemical |
| Guangdong Marubi Bio |
China Petroleum and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Guangdong Marubi
The main advantage of trading using opposite China Petroleum and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Guangdong Marubi 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 Guangdong Marubi will offset losses from the drop in Guangdong Marubi's long position.| China Petroleum vs. Western Superconducting Tech | China Petroleum vs. Holitech Technology Co | China Petroleum vs. Ping An Insurance | China Petroleum vs. Chengdu Xinzhu RoadBridge |
| Guangdong Marubi vs. China Petroleum Chemical | Guangdong Marubi vs. PetroChina Co Ltd | Guangdong Marubi vs. China State Construction | Guangdong Marubi vs. China Railway Group |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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