Correlation Between Eyebright Medical and China Petroleum
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By analyzing existing cross correlation between Eyebright Medical Technology and China Petroleum Chemical, you can compare the effects of market volatilities on Eyebright Medical 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 Eyebright Medical with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eyebright Medical and China Petroleum.
Diversification Opportunities for Eyebright Medical and China Petroleum
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eyebright and China is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Eyebright Medical Technology 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 Eyebright Medical 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 Eyebright Medical Technology 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 Eyebright Medical i.e., Eyebright Medical and China Petroleum go up and down completely randomly.
Pair Corralation between Eyebright Medical and China Petroleum
Assuming the 90 days trading horizon Eyebright Medical Technology is expected to generate 2.55 times more return on investment than China Petroleum. However, Eyebright Medical is 2.55 times more volatile than China Petroleum Chemical. It trades about 0.06 of its potential returns per unit of risk. China Petroleum Chemical is currently generating about -0.41 per unit of risk. If you would invest 9,280 in Eyebright Medical Technology on November 2, 2024 and sell it today you would earn a total of 199.00 from holding Eyebright Medical Technology or generate 2.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eyebright Medical Technology vs. China Petroleum Chemical
Performance |
| Timeline |
| Eyebright Medical |
| China Petroleum Chemical |
Eyebright Medical and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eyebright Medical and China Petroleum
The main advantage of trading using opposite Eyebright Medical and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eyebright Medical 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.| Eyebright Medical vs. Agricultural Bank of | Eyebright Medical vs. Industrial and Commercial | Eyebright Medical vs. Bank of China | Eyebright Medical vs. China Construction Bank |
| China Petroleum vs. Beijing Kingsoft Office | China Petroleum vs. Shandong Hi Speed RoadBridge | China Petroleum vs. Zhongshan Broad Ocean Motor | China Petroleum vs. AUPU Home Style |
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.
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