Correlation Between Caihong Display and Maoming Petro
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By analyzing existing cross correlation between Caihong Display Devices and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on Caihong Display 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 Caihong Display with a short position of Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caihong Display and Maoming Petro.
Diversification Opportunities for Caihong Display and Maoming Petro
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Caihong and Maoming is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Caihong Display Devices 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 Caihong Display 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 Caihong Display Devices 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 Caihong Display i.e., Caihong Display and Maoming Petro go up and down completely randomly.
Pair Corralation between Caihong Display and Maoming Petro
Assuming the 90 days trading horizon Caihong Display Devices is expected to generate 1.98 times more return on investment than Maoming Petro. However, Caihong Display is 1.98 times more volatile than Maoming Petro Chemical Shihua. It trades about 0.09 of its potential returns per unit of risk. Maoming Petro Chemical Shihua is currently generating about -0.14 per unit of risk. If you would invest 838.00 in Caihong Display Devices on October 28, 2024 and sell it today you would earn a total of 44.00 from holding Caihong Display Devices or generate 5.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caihong Display Devices vs. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| Caihong Display Devices |
| Maoming Petro Chemical |
Caihong Display and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caihong Display and Maoming Petro
The main advantage of trading using opposite Caihong Display and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caihong Display 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.| Caihong Display vs. Chengdu Kanghua Biological | Caihong Display vs. Suzhou Novoprotein Scientific | Caihong Display vs. Aluminum Corp of | Caihong Display vs. COL Digital Publishing |
| Maoming Petro vs. Meinian Onehealth Healthcare | Maoming Petro vs. Youngy Health Co | Maoming Petro vs. Shanghai Yaoji Playing | Maoming Petro vs. Goodwill E Health |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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