Correlation Between China Petroleum and Shanghai Rightongene
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By analyzing existing cross correlation between China Petroleum Chemical and Shanghai Rightongene Biotechnology, you can compare the effects of market volatilities on China Petroleum and Shanghai Rightongene 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 Shanghai Rightongene. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Shanghai Rightongene.
Diversification Opportunities for China Petroleum and Shanghai Rightongene
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Shanghai is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Shanghai Rightongene Biotechno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rightongene 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 Shanghai Rightongene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rightongene has no effect on the direction of China Petroleum i.e., China Petroleum and Shanghai Rightongene go up and down completely randomly.
Pair Corralation between China Petroleum and Shanghai Rightongene
Assuming the 90 days trading horizon China Petroleum Chemical is expected to under-perform the Shanghai Rightongene. But the stock apears to be less risky and, when comparing its historical volatility, China Petroleum Chemical is 3.86 times less risky than Shanghai Rightongene. The stock trades about -0.28 of its potential returns per unit of risk. The Shanghai Rightongene Biotechnology is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 2,008 in Shanghai Rightongene Biotechnology on November 29, 2024 and sell it today you would earn a total of 229.00 from holding Shanghai Rightongene Biotechnology or generate 11.4% 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. Shanghai Rightongene Biotechno
Performance |
| Timeline |
| China Petroleum Chemical |
| Shanghai Rightongene |
China Petroleum and Shanghai Rightongene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Shanghai Rightongene
The main advantage of trading using opposite China Petroleum and Shanghai Rightongene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Shanghai Rightongene 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 Shanghai Rightongene will offset losses from the drop in Shanghai Rightongene's long position.| China Petroleum vs. Goke Microelectronics Co | China Petroleum vs. TVZone Media Co | China Petroleum vs. Southern PublishingMedia Co | China Petroleum vs. Shanghai Xinhua Media |
| Shanghai Rightongene vs. Fujian Nebula Electronics | Shanghai Rightongene vs. Sihui Fuji Electronics | Shanghai Rightongene vs. Dymatic Chemicals | Shanghai Rightongene vs. HeBei Jinniu Chemical |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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