Correlation Between Goodwill E and Maoming Petro
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By analyzing existing cross correlation between Goodwill E Health and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on Goodwill E and Maoming Petro 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 Goodwill E with a short position of Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodwill E and Maoming Petro.
Diversification Opportunities for Goodwill E and Maoming Petro
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Goodwill and Maoming is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Goodwill E Health and Maoming Petro Chemical Shihua in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maoming Petro Chemical and Goodwill E 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 Goodwill E Health are associated (or correlated) with Maoming Petro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maoming Petro Chemical has no effect on the direction of Goodwill E i.e., Goodwill E and Maoming Petro go up and down completely randomly.
Pair Corralation between Goodwill E and Maoming Petro
Assuming the 90 days trading horizon Goodwill E Health is expected to generate 2.35 times more return on investment than Maoming Petro. However, Goodwill E is 2.35 times more volatile than Maoming Petro Chemical Shihua. It trades about -0.05 of its potential returns per unit of risk. Maoming Petro Chemical Shihua is currently generating about -0.14 per unit of risk. If you would invest 2,612 in Goodwill E Health on October 28, 2024 and sell it today you would lose (141.00) from holding Goodwill E Health or give up 5.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goodwill E Health vs. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| Goodwill E Health |
| Maoming Petro Chemical |
Goodwill E and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodwill E and Maoming Petro
The main advantage of trading using opposite Goodwill E and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodwill E position performs unexpectedly, Maoming Petro 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 Maoming Petro will offset losses from the drop in Maoming Petro's long position.| Goodwill E vs. Sichuan Yahua Industrial | Goodwill E vs. Fujian Newland Computer | Goodwill E vs. Hengli Industrial Development | Goodwill E vs. Chengtun Mining Group |
| Maoming Petro vs. Sanbo Hospital Management | Maoming Petro vs. Shenzhen AV Display Co | Maoming Petro vs. Changchun Engley Automobile | Maoming Petro vs. Youngy Health Co |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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