Correlation Between V V and Maoming Petro
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By analyzing existing cross correlation between V V Food and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on V V 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 V V with a short position of Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of V V and Maoming Petro.
Diversification Opportunities for V V and Maoming Petro
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 600300 and Maoming is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding V V Food 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 V V 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 V V Food 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 V V i.e., V V and Maoming Petro go up and down completely randomly.
Pair Corralation between V V and Maoming Petro
Assuming the 90 days trading horizon V V Food is expected to generate 1.14 times more return on investment than Maoming Petro. However, V V is 1.14 times more volatile than Maoming Petro Chemical Shihua. It trades about 0.12 of its potential returns per unit of risk. Maoming Petro Chemical Shihua is currently generating about 0.1 per unit of risk. If you would invest 229.00 in V V Food on October 18, 2024 and sell it today you would earn a total of 70.00 from holding V V Food or generate 30.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
V V Food vs. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| V V Food |
| Maoming Petro Chemical |
V V and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with V V and Maoming Petro
The main advantage of trading using opposite V V and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if V V 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.| V V vs. Ping An Insurance | V V vs. Shenyang Huitian Thermal | V V vs. Hangzhou Gaoxin Rubber | V V vs. Ningbo Tip Rubber |
| Maoming Petro vs. Xinjiang Tianrun Dairy | Maoming Petro vs. Guilin Seamild Foods | Maoming Petro vs. V V Food | Maoming Petro vs. Ningxia Younglight Chemicals |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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