Correlation Between Universal Scientific and China Petroleum
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By analyzing existing cross correlation between Universal Scientific Industrial and China Petroleum Chemical, you can compare the effects of market volatilities on Universal Scientific 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 Universal Scientific with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal Scientific and China Petroleum.
Diversification Opportunities for Universal Scientific and China Petroleum
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Universal and China is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Universal Scientific Industria 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 Universal Scientific 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 Universal Scientific Industrial 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 Universal Scientific i.e., Universal Scientific and China Petroleum go up and down completely randomly.
Pair Corralation between Universal Scientific and China Petroleum
Assuming the 90 days trading horizon Universal Scientific Industrial is expected to generate 1.51 times more return on investment than China Petroleum. However, Universal Scientific is 1.51 times more volatile than China Petroleum Chemical. It trades about 0.3 of its potential returns per unit of risk. China Petroleum Chemical is currently generating about 0.17 per unit of risk. If you would invest 1,420 in Universal Scientific Industrial on September 28, 2024 and sell it today you would earn a total of 173.00 from holding Universal Scientific Industrial or generate 12.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Universal Scientific Industria vs. China Petroleum Chemical
Performance |
| Timeline |
| Universal Scientific |
| China Petroleum Chemical |
Universal Scientific and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Universal Scientific and China Petroleum
The main advantage of trading using opposite Universal Scientific and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal Scientific 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.| Universal Scientific vs. Industrial and Commercial | Universal Scientific vs. China Construction Bank | Universal Scientific vs. Agricultural Bank of | Universal Scientific vs. Bank of China |
| China Petroleum vs. Zhejiang Kingland Pipeline | China Petroleum vs. Huizhou Speed Wireless | China Petroleum vs. Shaanxi Construction Machinery | China Petroleum vs. Linktel Technologies 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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