Correlation Between Zhangzhou Pientzehuang and China Petroleum
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhangzhou Pientzehuang Pharmaceutical and China Petroleum Chemical, you can compare the effects of market volatilities on Zhangzhou Pientzehuang 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 Zhangzhou Pientzehuang with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhangzhou Pientzehuang and China Petroleum.
Diversification Opportunities for Zhangzhou Pientzehuang and China Petroleum
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zhangzhou and China is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Zhangzhou Pientzehuang Pharmac 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 Zhangzhou Pientzehuang 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 Zhangzhou Pientzehuang Pharmaceutical 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 Zhangzhou Pientzehuang i.e., Zhangzhou Pientzehuang and China Petroleum go up and down completely randomly.
Pair Corralation between Zhangzhou Pientzehuang and China Petroleum
Assuming the 90 days trading horizon Zhangzhou Pientzehuang Pharmaceutical is expected to under-perform the China Petroleum. In addition to that, Zhangzhou Pientzehuang is 1.11 times more volatile than China Petroleum Chemical. It trades about -0.01 of its total potential returns per unit of risk. China Petroleum Chemical is currently generating about 0.06 per unit of volatility. If you would invest 434.00 in China Petroleum Chemical on September 3, 2024 and sell it today you would earn a total of 202.00 from holding China Petroleum Chemical or generate 46.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhangzhou Pientzehuang Pharmac vs. China Petroleum Chemical
Performance |
| Timeline |
| Zhangzhou Pientzehuang |
| China Petroleum Chemical |
Zhangzhou Pientzehuang and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhangzhou Pientzehuang and China Petroleum
The main advantage of trading using opposite Zhangzhou Pientzehuang and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhangzhou Pientzehuang 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.The idea behind Zhangzhou Pientzehuang Pharmaceutical and China Petroleum Chemical pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| China Petroleum vs. Eastern Air Logistics | China Petroleum vs. Ningbo Fangzheng Automobile | China Petroleum vs. Xinhua Winshare Publishing | China Petroleum vs. Jiangsu Phoenix Publishing |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |