Correlation Between Jiangsu Broadcasting and China Petroleum
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By analyzing existing cross correlation between Jiangsu Broadcasting Cable and China Petroleum Chemical, you can compare the effects of market volatilities on Jiangsu Broadcasting 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 Jiangsu Broadcasting with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Broadcasting and China Petroleum.
Diversification Opportunities for Jiangsu Broadcasting and China Petroleum
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jiangsu and China is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Broadcasting Cable 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 Jiangsu Broadcasting 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 Jiangsu Broadcasting Cable 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 Jiangsu Broadcasting i.e., Jiangsu Broadcasting and China Petroleum go up and down completely randomly.
Pair Corralation between Jiangsu Broadcasting and China Petroleum
Assuming the 90 days trading horizon Jiangsu Broadcasting Cable is expected to generate 2.23 times more return on investment than China Petroleum. However, Jiangsu Broadcasting is 2.23 times more volatile than China Petroleum Chemical. It trades about 0.19 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 333.00 in Jiangsu Broadcasting Cable on September 2, 2024 and sell it today you would earn a total of 25.00 from holding Jiangsu Broadcasting Cable or generate 7.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Broadcasting Cable vs. China Petroleum Chemical
Performance |
| Timeline |
| Jiangsu Broadcasting |
| China Petroleum Chemical |
Jiangsu Broadcasting and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Broadcasting and China Petroleum
The main advantage of trading using opposite Jiangsu Broadcasting and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Broadcasting 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.| Jiangsu Broadcasting vs. Lutian Machinery Co | Jiangsu Broadcasting vs. China Longyuan Power | Jiangsu Broadcasting vs. PetroChina Co Ltd | Jiangsu Broadcasting vs. Bank of China |
| China Petroleum vs. Vohringer Home Technology | China Petroleum vs. Xinjiang Baodi Mining | China Petroleum vs. Xiamen Goldenhome Co | China Petroleum vs. Jinhui Mining Co |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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