Correlation Between Shijiazhuang Tonhe and China Petroleum
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By analyzing existing cross correlation between Shijiazhuang Tonhe Electronics and China Petroleum Chemical, you can compare the effects of market volatilities on Shijiazhuang Tonhe 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 Shijiazhuang Tonhe with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shijiazhuang Tonhe and China Petroleum.
Diversification Opportunities for Shijiazhuang Tonhe and China Petroleum
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shijiazhuang and China is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Shijiazhuang Tonhe Electronics 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 Shijiazhuang Tonhe 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 Shijiazhuang Tonhe Electronics 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 Shijiazhuang Tonhe i.e., Shijiazhuang Tonhe and China Petroleum go up and down completely randomly.
Pair Corralation between Shijiazhuang Tonhe and China Petroleum
Assuming the 90 days trading horizon Shijiazhuang Tonhe is expected to generate 1.09 times less return on investment than China Petroleum. In addition to that, Shijiazhuang Tonhe is 2.45 times more volatile than China Petroleum Chemical. It trades about 0.06 of its total potential returns per unit of risk. China Petroleum Chemical is currently generating about 0.15 per unit of volatility. If you would invest 633.00 in China Petroleum Chemical on September 24, 2024 and sell it today you would earn a total of 21.00 from holding China Petroleum Chemical or generate 3.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Shijiazhuang Tonhe Electronics vs. China Petroleum Chemical
Performance |
Timeline |
Shijiazhuang Tonhe |
China Petroleum Chemical |
Shijiazhuang Tonhe and China Petroleum Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shijiazhuang Tonhe and China Petroleum
The main advantage of trading using opposite Shijiazhuang Tonhe and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shijiazhuang Tonhe 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.Shijiazhuang Tonhe vs. PetroChina Co Ltd | Shijiazhuang Tonhe vs. China Mobile Limited | Shijiazhuang Tonhe vs. CNOOC Limited | Shijiazhuang Tonhe 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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