Correlation Between Xiamen Bank and Maoming Petro
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xiamen Bank Co and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on Xiamen Bank 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 Xiamen Bank with a short position of Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Bank and Maoming Petro.
Diversification Opportunities for Xiamen Bank and Maoming Petro
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiamen and Maoming is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Bank Co 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 Xiamen Bank 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 Xiamen Bank Co 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 Xiamen Bank i.e., Xiamen Bank and Maoming Petro go up and down completely randomly.
Pair Corralation between Xiamen Bank and Maoming Petro
Assuming the 90 days trading horizon Xiamen Bank is expected to generate 4.62 times less return on investment than Maoming Petro. But when comparing it to its historical volatility, Xiamen Bank Co is 1.08 times less risky than Maoming Petro. It trades about 0.04 of its potential returns per unit of risk. Maoming Petro Chemical Shihua is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 317.00 in Maoming Petro Chemical Shihua on August 28, 2024 and sell it today you would earn a total of 79.00 from holding Maoming Petro Chemical Shihua or generate 24.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Bank Co vs. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| Xiamen Bank |
| Maoming Petro Chemical |
Xiamen Bank and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Bank and Maoming Petro
The main advantage of trading using opposite Xiamen Bank and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Bank 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.| Xiamen Bank vs. China Life Insurance | Xiamen Bank vs. Piotech Inc A | Xiamen Bank vs. Dongxing Sec Co | Xiamen Bank vs. Shanghai OPM Biosciences |
| Maoming Petro vs. Beijing Sanyuan Foods | Maoming Petro vs. Jiamei Food Packaging | Maoming Petro vs. Offshore Oil Engineering | Maoming Petro vs. Xiamen Bank 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |