Correlation Between Nantong Haixing and China Petroleum
Specify exactly 2 symbols:
By analyzing existing cross correlation between Nantong Haixing Electronics and China Petroleum Chemical, you can compare the effects of market volatilities on Nantong Haixing 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 Nantong Haixing with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nantong Haixing and China Petroleum.
Diversification Opportunities for Nantong Haixing and China Petroleum
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nantong and China is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Nantong Haixing Electronics 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 Nantong Haixing 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 Nantong Haixing Electronics 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 Nantong Haixing i.e., Nantong Haixing and China Petroleum go up and down completely randomly.
Pair Corralation between Nantong Haixing and China Petroleum
Assuming the 90 days trading horizon Nantong Haixing Electronics is expected to under-perform the China Petroleum. In addition to that, Nantong Haixing is 1.56 times more volatile than China Petroleum Chemical. It trades about -0.11 of its total potential returns per unit of risk. China Petroleum Chemical is currently generating about -0.04 per unit of volatility. If you would invest 644.00 in China Petroleum Chemical on August 29, 2024 and sell it today you would lose (8.00) from holding China Petroleum Chemical or give up 1.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nantong Haixing Electronics vs. China Petroleum Chemical
Performance |
| Timeline |
| Nantong Haixing Elec |
| China Petroleum Chemical |
Nantong Haixing and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nantong Haixing and China Petroleum
The main advantage of trading using opposite Nantong Haixing and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nantong Haixing 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.| Nantong Haixing vs. Kweichow Moutai Co | Nantong Haixing vs. Shenzhen Mindray Bio Medical | Nantong Haixing vs. Jiangsu Pacific Quartz | Nantong Haixing vs. G bits Network Technology |
| China Petroleum vs. Hefei Metalforming Mach | China Petroleum vs. Xinjiang Baodi Mining | China Petroleum vs. Guangdong Jingyi Metal | China Petroleum vs. Hainan Mining 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |