Correlation Between PUBLIC STORAGE and China Petroleum
Can any of the company-specific risk be diversified away by investing in both PUBLIC STORAGE and China Petroleum at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining PUBLIC STORAGE and China Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PUBLIC STORAGE PRFO and China Petroleum Chemical, you can compare the effects of market volatilities on PUBLIC STORAGE 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 PUBLIC STORAGE with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of PUBLIC STORAGE and China Petroleum.
Diversification Opportunities for PUBLIC STORAGE and China Petroleum
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PUBLIC and China is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding PUBLIC STORAGE PRFO 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 PUBLIC STORAGE 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 PUBLIC STORAGE PRFO 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 PUBLIC STORAGE i.e., PUBLIC STORAGE and China Petroleum go up and down completely randomly.
Pair Corralation between PUBLIC STORAGE and China Petroleum
Assuming the 90 days trading horizon PUBLIC STORAGE PRFO is expected to under-perform the China Petroleum. But the stock apears to be less risky and, when comparing its historical volatility, PUBLIC STORAGE PRFO is 2.21 times less risky than China Petroleum. The stock trades about -0.15 of its potential returns per unit of risk. The China Petroleum Chemical is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 52.00 in China Petroleum Chemical on September 13, 2024 and sell it today you would earn a total of 0.00 from holding China Petroleum Chemical or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PUBLIC STORAGE PRFO vs. China Petroleum Chemical
Performance |
| Timeline |
| PUBLIC STORAGE PRFO |
| China Petroleum Chemical |
PUBLIC STORAGE and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PUBLIC STORAGE and China Petroleum
The main advantage of trading using opposite PUBLIC STORAGE and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PUBLIC STORAGE 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.| PUBLIC STORAGE vs. Xtrackers LevDAX | PUBLIC STORAGE vs. Xtrackers ShortDAX | PUBLIC STORAGE vs. Lyxor 1 | PUBLIC STORAGE vs. SIVERS SEMICONDUCTORS AB |
| China Petroleum vs. Exxon Mobil | China Petroleum vs. TotalEnergies SE | China Petroleum vs. BP plc | China Petroleum vs. Superior Plus Corp |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |