Correlation Between XinJiang GuoTong and Maoming Petro
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By analyzing existing cross correlation between XinJiang GuoTong Pipeline and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on XinJiang GuoTong and Maoming Petro 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 XinJiang GuoTong with a short position of Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and Maoming Petro.
Diversification Opportunities for XinJiang GuoTong and Maoming Petro
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between XinJiang and Maoming is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline and Maoming Petro Chemical Shihua in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maoming Petro Chemical and XinJiang GuoTong 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 XinJiang GuoTong Pipeline are associated (or correlated) with Maoming Petro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maoming Petro Chemical has no effect on the direction of XinJiang GuoTong i.e., XinJiang GuoTong and Maoming Petro go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and Maoming Petro
Assuming the 90 days trading horizon XinJiang GuoTong Pipeline is expected to generate 2.0 times more return on investment than Maoming Petro. However, XinJiang GuoTong is 2.0 times more volatile than Maoming Petro Chemical Shihua. It trades about 0.2 of its potential returns per unit of risk. Maoming Petro Chemical Shihua is currently generating about 0.18 per unit of risk. If you would invest 898.00 in XinJiang GuoTong Pipeline on September 23, 2024 and sell it today you would earn a total of 152.00 from holding XinJiang GuoTong Pipeline or generate 16.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
XinJiang GuoTong Pipeline vs. Maoming Petro Chemical Shihua
Performance |
Timeline |
XinJiang GuoTong Pipeline |
Maoming Petro Chemical |
XinJiang GuoTong and Maoming Petro Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with XinJiang GuoTong and Maoming Petro
The main advantage of trading using opposite XinJiang GuoTong and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong position performs unexpectedly, Maoming Petro 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 Maoming Petro will offset losses from the drop in Maoming Petro's long position.XinJiang GuoTong vs. Kweichow Moutai Co | XinJiang GuoTong vs. Contemporary Amperex Technology | XinJiang GuoTong vs. G bits Network Technology | XinJiang GuoTong vs. BYD Co Ltd |
Maoming Petro vs. Youyou Foods Co | Maoming Petro vs. Tieling Newcity Investment | Maoming Petro vs. Xiangpiaopiao Food Co | Maoming Petro vs. Metro Investment Development |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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