Correlation Between China Union and China Petroleum
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Union Holdings and China Petroleum Chemical, you can compare the effects of market volatilities on China Union 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 China Union with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Union and China Petroleum.
Diversification Opportunities for China Union and China Petroleum
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and China is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding China Union Holdings 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 China Union 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 China Union Holdings 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 China Union i.e., China Union and China Petroleum go up and down completely randomly.
Pair Corralation between China Union and China Petroleum
Assuming the 90 days trading horizon China Union Holdings is expected to generate 1.83 times more return on investment than China Petroleum. However, China Union is 1.83 times more volatile than China Petroleum Chemical. It trades about 0.11 of its potential returns per unit of risk. China Petroleum Chemical is currently generating about 0.03 per unit of risk. If you would invest 306.00 in China Union Holdings on September 24, 2024 and sell it today you would earn a total of 136.00 from holding China Union Holdings or generate 44.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
China Union Holdings vs. China Petroleum Chemical
Performance |
Timeline |
China Union Holdings |
China Petroleum Chemical |
China Union and China Petroleum Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Union and China Petroleum
The main advantage of trading using opposite China Union and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Union 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.China Union vs. PetroChina Co Ltd | China Union vs. China Mobile Limited | China Union vs. CNOOC Limited | China Union vs. Ping An Insurance |
China Petroleum vs. Guangdong Liantai Environmental | China Petroleum vs. China Asset Management | China Petroleum vs. Sinocat Environmental Technology | China Petroleum vs. Grandblue Environment 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
CEOs Directory Screen CEOs from public companies around the world | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum |