Correlation Between China Petroleum and Jiahe Foods
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By analyzing existing cross correlation between China Petroleum Chemical and Jiahe Foods Industry, you can compare the effects of market volatilities on China Petroleum and Jiahe Foods 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 Jiahe Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Jiahe Foods.
Diversification Opportunities for China Petroleum and Jiahe Foods
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Jiahe is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Jiahe Foods Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiahe Foods Industry 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 Jiahe Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiahe Foods Industry has no effect on the direction of China Petroleum i.e., China Petroleum and Jiahe Foods go up and down completely randomly.
Pair Corralation between China Petroleum and Jiahe Foods
Assuming the 90 days trading horizon China Petroleum Chemical is expected to generate 0.6 times more return on investment than Jiahe Foods. However, China Petroleum Chemical is 1.67 times less risky than Jiahe Foods. It trades about 0.06 of its potential returns per unit of risk. Jiahe Foods Industry 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. Jiahe Foods Industry
Performance |
| Timeline |
| China Petroleum Chemical |
| Jiahe Foods Industry |
China Petroleum and Jiahe Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Jiahe Foods
The main advantage of trading using opposite China Petroleum and Jiahe Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Jiahe Foods 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 Jiahe Foods will offset losses from the drop in Jiahe Foods' 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 |
| Jiahe Foods vs. China Petroleum Chemical | Jiahe Foods vs. PetroChina Co Ltd | Jiahe Foods vs. China State Construction | Jiahe Foods 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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