Correlation Between Changchun Engley and Maoming Petro
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By analyzing existing cross correlation between Changchun Engley Automobile and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on Changchun Engley 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 Changchun Engley with a short position of Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun Engley and Maoming Petro.
Diversification Opportunities for Changchun Engley and Maoming Petro
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Changchun and Maoming is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Changchun Engley Automobile 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 Changchun Engley 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 Changchun Engley Automobile 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 Changchun Engley i.e., Changchun Engley and Maoming Petro go up and down completely randomly.
Pair Corralation between Changchun Engley and Maoming Petro
Assuming the 90 days trading horizon Changchun Engley Automobile is expected to under-perform the Maoming Petro. In addition to that, Changchun Engley is 1.09 times more volatile than Maoming Petro Chemical Shihua. It trades about -0.05 of its total potential returns per unit of risk. Maoming Petro Chemical Shihua is currently generating about 0.06 per unit of volatility. If you would invest 338.00 in Maoming Petro Chemical Shihua on September 3, 2024 and sell it today you would earn a total of 62.00 from holding Maoming Petro Chemical Shihua or generate 18.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun Engley Automobile vs. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| Changchun Engley Aut |
| Maoming Petro Chemical |
Changchun Engley and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun Engley and Maoming Petro
The main advantage of trading using opposite Changchun Engley and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun Engley 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.| Changchun Engley vs. JCHX Mining Management | Changchun Engley vs. Iat Automobile Technology | Changchun Engley vs. Chengtun Mining Group | Changchun Engley vs. Hainan Mining Co |
| Maoming Petro vs. Zijin Mining Group | Maoming Petro vs. Baoshan Iron Steel | Maoming Petro vs. Rongsheng Petrochemical Co | Maoming Petro vs. Hoshine Silicon Ind |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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