Correlation Between Kingclean Electric and China Petroleum
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By analyzing existing cross correlation between Kingclean Electric Co and China Petroleum Chemical, you can compare the effects of market volatilities on Kingclean Electric 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 Kingclean Electric with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingclean Electric and China Petroleum.
Diversification Opportunities for Kingclean Electric and China Petroleum
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kingclean and China is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Kingclean Electric Co 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 Kingclean Electric 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 Kingclean Electric Co 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 Kingclean Electric i.e., Kingclean Electric and China Petroleum go up and down completely randomly.
Pair Corralation between Kingclean Electric and China Petroleum
Assuming the 90 days trading horizon Kingclean Electric Co is expected to under-perform the China Petroleum. In addition to that, Kingclean Electric is 1.85 times more volatile than China Petroleum Chemical. It trades about -0.14 of its total potential returns per unit of risk. China Petroleum Chemical is currently generating about 0.08 per unit of volatility. If you would invest 627.00 in China Petroleum Chemical on September 15, 2024 and sell it today you would earn a total of 9.00 from holding China Petroleum Chemical or generate 1.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kingclean Electric Co vs. China Petroleum Chemical
Performance |
| Timeline |
| Kingclean Electric |
| China Petroleum Chemical |
Kingclean Electric and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingclean Electric and China Petroleum
The main advantage of trading using opposite Kingclean Electric and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingclean Electric 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.| Kingclean Electric vs. Chengdu Kanghua Biological | Kingclean Electric vs. Beijing Wantai Biological | Kingclean Electric vs. Suzhou Novoprotein Scientific | Kingclean Electric vs. Aluminum Corp of |
| China Petroleum vs. Guangdong Marubi Biotechnology | China Petroleum vs. Shandong Sanyuan Biotechnology | China Petroleum vs. INKON Life Technology | China Petroleum vs. Western Superconducting Tech |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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