Correlation Between Shanghai Metersbonwe and China Petroleum
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By analyzing existing cross correlation between Shanghai Metersbonwe FashionAccessories and China Petroleum Chemical, you can compare the effects of market volatilities on Shanghai Metersbonwe 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 Shanghai Metersbonwe with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Metersbonwe and China Petroleum.
Diversification Opportunities for Shanghai Metersbonwe and China Petroleum
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shanghai and China is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Metersbonwe FashionAc 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 Shanghai Metersbonwe 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 Shanghai Metersbonwe FashionAccessories 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 Shanghai Metersbonwe i.e., Shanghai Metersbonwe and China Petroleum go up and down completely randomly.
Pair Corralation between Shanghai Metersbonwe and China Petroleum
Assuming the 90 days trading horizon Shanghai Metersbonwe FashionAccessories is expected to generate 2.72 times more return on investment than China Petroleum. However, Shanghai Metersbonwe is 2.72 times more volatile than China Petroleum Chemical. It trades about 0.26 of its potential returns per unit of risk. China Petroleum Chemical is currently generating about 0.02 per unit of risk. If you would invest 138.00 in Shanghai Metersbonwe FashionAccessories on September 14, 2024 and sell it today you would earn a total of 120.00 from holding Shanghai Metersbonwe FashionAccessories or generate 86.96% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Shanghai Metersbonwe FashionAc vs. China Petroleum Chemical
Performance |
Timeline |
Shanghai Metersbonwe |
China Petroleum Chemical |
Shanghai Metersbonwe and China Petroleum Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shanghai Metersbonwe and China Petroleum
The main advantage of trading using opposite Shanghai Metersbonwe and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Metersbonwe 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.Shanghai Metersbonwe vs. Industrial and Commercial | Shanghai Metersbonwe vs. Agricultural Bank of | Shanghai Metersbonwe vs. China Construction Bank | Shanghai Metersbonwe vs. Bank of China |
China Petroleum vs. Qilu Bank Co | China Petroleum vs. Postal Savings Bank | China Petroleum vs. HeNan Splendor Science | China Petroleum vs. Western Mining 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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