Correlation Between Zhejiang Daily and China Petroleum
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By analyzing existing cross correlation between Zhejiang Daily Media and China Petroleum Chemical, you can compare the effects of market volatilities on Zhejiang Daily 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 Zhejiang Daily with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Daily and China Petroleum.
Diversification Opportunities for Zhejiang Daily and China Petroleum
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zhejiang and China is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Daily Media 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 Zhejiang Daily 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 Zhejiang Daily Media 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 Zhejiang Daily i.e., Zhejiang Daily and China Petroleum go up and down completely randomly.
Pair Corralation between Zhejiang Daily and China Petroleum
Assuming the 90 days trading horizon Zhejiang Daily Media is expected to generate 2.69 times more return on investment than China Petroleum. However, Zhejiang Daily is 2.69 times more volatile than China Petroleum Chemical. It trades about 0.07 of its potential returns per unit of risk. China Petroleum Chemical is currently generating about 0.08 per unit of risk. If you would invest 1,119 in Zhejiang Daily Media on September 15, 2024 and sell it today you would earn a total of 36.00 from holding Zhejiang Daily Media or generate 3.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Daily Media vs. China Petroleum Chemical
Performance |
| Timeline |
| Zhejiang Daily Media |
| China Petroleum Chemical |
Zhejiang Daily and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Daily and China Petroleum
The main advantage of trading using opposite Zhejiang Daily and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Daily 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.| Zhejiang Daily vs. Ye Chiu Metal | Zhejiang Daily vs. Yangmei Chemical Co | Zhejiang Daily vs. Lianhe Chemical Technology | Zhejiang Daily vs. North Huajin Chemical |
| China Petroleum vs. Guangdong Marubi Biotechnology | China Petroleum vs. Shandong Sanyuan Biotechnology | China Petroleum vs. INKON Life Technology | China Petroleum vs. Western Superconducting Tech |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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