Correlation Between Maoming Petro and Metallurgical
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By analyzing existing cross correlation between Maoming Petro Chemical Shihua and Metallurgical of, you can compare the effects of market volatilities on Maoming Petro and Metallurgical 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 Maoming Petro with a short position of Metallurgical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maoming Petro and Metallurgical.
Diversification Opportunities for Maoming Petro and Metallurgical
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Maoming and Metallurgical is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Maoming Petro Chemical Shihua and Metallurgical of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metallurgical and Maoming Petro 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 Maoming Petro Chemical Shihua are associated (or correlated) with Metallurgical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metallurgical has no effect on the direction of Maoming Petro i.e., Maoming Petro and Metallurgical go up and down completely randomly.
Pair Corralation between Maoming Petro and Metallurgical
Assuming the 90 days trading horizon Maoming Petro Chemical Shihua is expected to generate 1.45 times more return on investment than Metallurgical. However, Maoming Petro is 1.45 times more volatile than Metallurgical of. It trades about 0.07 of its potential returns per unit of risk. Metallurgical of is currently generating about 0.02 per unit of risk. If you would invest 359.00 in Maoming Petro Chemical Shihua on September 25, 2024 and sell it today you would earn a total of 25.00 from holding Maoming Petro Chemical Shihua or generate 6.96% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Maoming Petro Chemical Shihua vs. Metallurgical of
Performance |
Timeline |
Maoming Petro Chemical |
Metallurgical |
Maoming Petro and Metallurgical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Maoming Petro and Metallurgical
The main advantage of trading using opposite Maoming Petro and Metallurgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maoming Petro position performs unexpectedly, Metallurgical 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 Metallurgical will offset losses from the drop in Metallurgical's long position.Maoming Petro vs. Hunan Investment Group | Maoming Petro vs. Jointo Energy Investment | Maoming Petro vs. Postal Savings Bank | Maoming Petro vs. Rongcheer Industrial 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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