Correlation Between JuneYao Dairy and China Petroleum
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By analyzing existing cross correlation between JuneYao Dairy Co and China Petroleum Chemical, you can compare the effects of market volatilities on JuneYao Dairy 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 JuneYao Dairy with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of JuneYao Dairy and China Petroleum.
Diversification Opportunities for JuneYao Dairy and China Petroleum
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between JuneYao and China is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding JuneYao Dairy 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 JuneYao Dairy 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 JuneYao Dairy 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 JuneYao Dairy i.e., JuneYao Dairy and China Petroleum go up and down completely randomly.
Pair Corralation between JuneYao Dairy and China Petroleum
Assuming the 90 days trading horizon JuneYao Dairy Co is expected to under-perform the China Petroleum. In addition to that, JuneYao Dairy is 1.69 times more volatile than China Petroleum Chemical. It trades about -0.06 of its total potential returns per unit of risk. China Petroleum Chemical is currently generating about 0.05 per unit of volatility. If you would invest 437.00 in China Petroleum Chemical on November 5, 2024 and sell it today you would earn a total of 171.00 from holding China Petroleum Chemical or generate 39.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JuneYao Dairy Co vs. China Petroleum Chemical
Performance |
| Timeline |
| JuneYao Dairy |
| China Petroleum Chemical |
JuneYao Dairy and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JuneYao Dairy and China Petroleum
The main advantage of trading using opposite JuneYao Dairy and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JuneYao Dairy 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.| JuneYao Dairy vs. Linewell Software Co | JuneYao Dairy vs. Soyea Technology Co | JuneYao Dairy vs. Hainan Haiqi Transportation | JuneYao Dairy vs. Iat Automobile Technology |
| China Petroleum vs. Zhengping RoadBridge Constr | China Petroleum vs. HeNan Splendor Science | China Petroleum vs. Longjian Road Bridge | China Petroleum vs. XiAn Dagang Road |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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