Correlation Between Shanghai Shuixing and China Petroleum
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By analyzing existing cross correlation between Shanghai Shuixing Home and China Petroleum Chemical, you can compare the effects of market volatilities on Shanghai Shuixing 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 Shanghai Shuixing with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Shuixing and China Petroleum.
Diversification Opportunities for Shanghai Shuixing and China Petroleum
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shanghai and China is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Shuixing Home 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 Shanghai Shuixing 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 Shanghai Shuixing Home 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 Shanghai Shuixing i.e., Shanghai Shuixing and China Petroleum go up and down completely randomly.
Pair Corralation between Shanghai Shuixing and China Petroleum
Assuming the 90 days trading horizon Shanghai Shuixing Home is expected to under-perform the China Petroleum. In addition to that, Shanghai Shuixing is 2.35 times more volatile than China Petroleum Chemical. It trades about -0.16 of its total potential returns per unit of risk. China Petroleum Chemical is currently generating about -0.03 per unit of volatility. If you would invest 636.00 in China Petroleum Chemical on October 14, 2024 and sell it today you would lose (7.00) from holding China Petroleum Chemical or give up 1.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Shuixing Home vs. China Petroleum Chemical
Performance |
| Timeline |
| Shanghai Shuixing Home |
| China Petroleum Chemical |
Shanghai Shuixing and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Shuixing and China Petroleum
The main advantage of trading using opposite Shanghai Shuixing and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Shuixing 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.| Shanghai Shuixing vs. Soyea Technology Co | Shanghai Shuixing vs. Guangdong Xiongsu Technology | Shanghai Shuixing vs. Kingsignal Technology Co | Shanghai Shuixing vs. Shuhua Sports Co |
| China Petroleum vs. DO Home Collection | China Petroleum vs. Cansino Biologics | China Petroleum vs. Shanghai Shuixing Home | China Petroleum vs. Ningbo Homelink Eco iTech |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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