Correlation Between Western Superconducting and China Petroleum
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By analyzing existing cross correlation between Western Superconducting Tech and China Petroleum Chemical, you can compare the effects of market volatilities on Western Superconducting 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 Western Superconducting with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Superconducting and China Petroleum.
Diversification Opportunities for Western Superconducting and China Petroleum
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Western and China is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Western Superconducting Tech 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 Western Superconducting 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 Western Superconducting Tech 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 Western Superconducting i.e., Western Superconducting and China Petroleum go up and down completely randomly.
Pair Corralation between Western Superconducting and China Petroleum
Assuming the 90 days trading horizon Western Superconducting Tech is expected to generate 1.92 times more return on investment than China Petroleum. However, Western Superconducting is 1.92 times more volatile than China Petroleum Chemical. It trades about 0.04 of its potential returns per unit of risk. China Petroleum Chemical is currently generating about 0.04 per unit of risk. If you would invest 4,152 in Western Superconducting Tech on September 13, 2024 and sell it today you would earn a total of 437.00 from holding Western Superconducting Tech or generate 10.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Superconducting Tech vs. China Petroleum Chemical
Performance |
| Timeline |
| Western Superconducting |
| China Petroleum Chemical |
Western Superconducting and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Superconducting and China Petroleum
The main advantage of trading using opposite Western Superconducting and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Superconducting 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.| Western Superconducting vs. Ming Yang Smart | Western Superconducting vs. 159681 | Western Superconducting vs. 159005 | Western Superconducting vs. Loctek Ergonomic Technology |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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