Correlation Between V V and China Petroleum
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By analyzing existing cross correlation between V V Food and China Petroleum Chemical, you can compare the effects of market volatilities on V V and China Petroleum 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 China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of V V and China Petroleum.
Diversification Opportunities for V V and China Petroleum
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 600300 and China is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding V V Food and China Petroleum Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Petroleum 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 China Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Petroleum Chemical has no effect on the direction of V V i.e., V V and China Petroleum go up and down completely randomly.
Pair Corralation between V V and China Petroleum
Assuming the 90 days trading horizon V V Food is expected to generate 1.7 times more return on investment than China Petroleum. However, V V is 1.7 times more volatile than China Petroleum Chemical. It trades about 0.06 of its potential returns per unit of risk. China Petroleum Chemical is currently generating about -0.04 per unit of risk. If you would invest 293.00 in V V Food on August 29, 2024 and sell it today you would earn a total of 6.00 from holding V V Food or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
V V Food vs. China Petroleum Chemical
Performance |
| Timeline |
| V V Food |
| China Petroleum Chemical |
V V and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with V V and China Petroleum
The main advantage of trading using opposite V V and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if V V position performs unexpectedly, China Petroleum 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 China Petroleum will offset losses from the drop in China Petroleum's long position.| V V vs. PetroChina Co Ltd | V V vs. China Mobile Limited | V V vs. Ping An Insurance | V V vs. China Petroleum Chemical |
| China Petroleum vs. Anhui Huilong Agricultural | China Petroleum vs. Chinese Universe Publishing | China Petroleum vs. Shanghai Action Education | China Petroleum vs. Time Publishing and |
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 Stocks Directory module to find actively traded stocks across global markets.
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