Correlation Between Cultural Investment and China Petroleum
Specify exactly 2 symbols:
By analyzing existing cross correlation between Cultural Investment Holdings and China Petroleum Chemical, you can compare the effects of market volatilities on Cultural Investment 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 Cultural Investment with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and China Petroleum.
Diversification Opportunities for Cultural Investment and China Petroleum
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cultural and China is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment 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 Cultural Investment 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 Cultural Investment 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 Cultural Investment i.e., Cultural Investment and China Petroleum go up and down completely randomly.
Pair Corralation between Cultural Investment and China Petroleum
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to generate 2.86 times more return on investment than China Petroleum. However, Cultural Investment is 2.86 times more volatile than China Petroleum Chemical. It trades about 0.03 of its potential returns per unit of risk. China Petroleum Chemical is currently generating about -0.09 per unit of risk. If you would invest 199.00 in Cultural Investment Holdings on October 25, 2024 and sell it today you would earn a total of 6.00 from holding Cultural Investment Holdings or generate 3.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Cultural Investment Holdings vs. China Petroleum Chemical
Performance |
Timeline |
Cultural Investment |
China Petroleum Chemical |
Cultural Investment and China Petroleum Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cultural Investment and China Petroleum
The main advantage of trading using opposite Cultural Investment and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment 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.Cultural Investment vs. Yingde Greatchem Chemicals | Cultural Investment vs. MayAir Technology Co | Cultural Investment vs. Beijing Kingsoft Office | Cultural Investment vs. Southchip Semiconductor Technology |
China Petroleum vs. Queclink Wireless Solutions | China Petroleum vs. Masterwork Machinery | China Petroleum vs. Shantui Construction Machinery | China Petroleum vs. State Grid InformationCommunication |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |