Correlation Between Tibet Huayu and Maoming Petro
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By analyzing existing cross correlation between Tibet Huayu Mining and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on Tibet Huayu 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 Tibet Huayu with a short position of Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tibet Huayu and Maoming Petro.
Diversification Opportunities for Tibet Huayu and Maoming Petro
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tibet and Maoming is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Tibet Huayu Mining 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 Tibet Huayu 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 Tibet Huayu Mining 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 Tibet Huayu i.e., Tibet Huayu and Maoming Petro go up and down completely randomly.
Pair Corralation between Tibet Huayu and Maoming Petro
Assuming the 90 days trading horizon Tibet Huayu is expected to generate 4.14 times less return on investment than Maoming Petro. In addition to that, Tibet Huayu is 1.6 times more volatile than Maoming Petro Chemical Shihua. It trades about 0.01 of its total potential returns per unit of risk. Maoming Petro Chemical Shihua is currently generating about 0.05 per unit of volatility. If you would invest 353.00 in Maoming Petro Chemical Shihua on September 1, 2024 and sell it today you would earn a total of 47.00 from holding Maoming Petro Chemical Shihua or generate 13.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tibet Huayu Mining vs. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| Tibet Huayu Mining |
| Maoming Petro Chemical |
Tibet Huayu and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tibet Huayu and Maoming Petro
The main advantage of trading using opposite Tibet Huayu and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tibet Huayu 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.| Tibet Huayu vs. Zijin Mining Group | Tibet Huayu vs. Wanhua Chemical Group | Tibet Huayu vs. Baoshan Iron Steel | Tibet Huayu vs. Shandong Gold Mining |
| Maoming Petro vs. Chongqing Brewery Co | Maoming Petro vs. Changchun Engley Automobile | Maoming Petro vs. Glodon Software Co | Maoming Petro vs. Dhc Software 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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