Correlation Between Beijing Wandong and Maoming Petro
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By analyzing existing cross correlation between Beijing Wandong Medical and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on Beijing Wandong and Maoming Petro 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 Beijing Wandong with a short position of Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Wandong and Maoming Petro.
Diversification Opportunities for Beijing Wandong and Maoming Petro
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Maoming is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Wandong Medical and Maoming Petro Chemical Shihua in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maoming Petro Chemical and Beijing Wandong 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 Beijing Wandong Medical are associated (or correlated) with Maoming Petro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maoming Petro Chemical has no effect on the direction of Beijing Wandong i.e., Beijing Wandong and Maoming Petro go up and down completely randomly.
Pair Corralation between Beijing Wandong and Maoming Petro
Assuming the 90 days trading horizon Beijing Wandong is expected to generate 10.17 times less return on investment than Maoming Petro. In addition to that, Beijing Wandong is 1.44 times more volatile than Maoming Petro Chemical Shihua. It trades about 0.01 of its total potential returns per unit of risk. Maoming Petro Chemical Shihua is currently generating about 0.13 per unit of volatility. If you would invest 409.00 in Maoming Petro Chemical Shihua on September 13, 2024 and sell it today you would earn a total of 19.00 from holding Maoming Petro Chemical Shihua or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Wandong Medical vs. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| Beijing Wandong Medical |
| Maoming Petro Chemical |
Beijing Wandong and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Wandong and Maoming Petro
The main advantage of trading using opposite Beijing Wandong and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Wandong position performs unexpectedly, Maoming Petro 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 Maoming Petro will offset losses from the drop in Maoming Petro's long position.| Beijing Wandong vs. Industrial and Commercial | Beijing Wandong vs. Kweichow Moutai Co | Beijing Wandong vs. Agricultural Bank of | Beijing Wandong vs. China Mobile Limited |
| Maoming Petro vs. Blue Sail Medical | Maoming Petro vs. Beijing Wandong Medical | Maoming Petro vs. Jiangsu Yanghe Brewery | Maoming Petro vs. Xian International Medical |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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