Correlation Between Ye Chiu and Maoming Petro
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ye Chiu Metal and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on Ye Chiu 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 Ye Chiu with a short position of Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Maoming Petro.
Diversification Opportunities for Ye Chiu and Maoming Petro
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 601388 and Maoming is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal 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 Ye Chiu 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 Ye Chiu Metal 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 Ye Chiu i.e., Ye Chiu and Maoming Petro go up and down completely randomly.
Pair Corralation between Ye Chiu and Maoming Petro
Assuming the 90 days trading horizon Ye Chiu is expected to generate 1.37 times less return on investment than Maoming Petro. In addition to that, Ye Chiu is 1.03 times more volatile than Maoming Petro Chemical Shihua. It trades about 0.04 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 |
Ye Chiu Metal vs. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| Ye Chiu Metal |
| Maoming Petro Chemical |
Ye Chiu and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Maoming Petro
The main advantage of trading using opposite Ye Chiu and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu 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.| Ye Chiu vs. Zijin Mining Group | Ye Chiu vs. Wanhua Chemical Group | Ye Chiu vs. Baoshan Iron Steel | Ye Chiu 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |