Correlation Between Jiujiang Shanshui and China Petroleum
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By analyzing existing cross correlation between Jiujiang Shanshui Technology and China Petroleum Chemical, you can compare the effects of market volatilities on Jiujiang Shanshui 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 Jiujiang Shanshui with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and China Petroleum.
Diversification Opportunities for Jiujiang Shanshui and China Petroleum
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jiujiang and China is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui Technology 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 Jiujiang Shanshui 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 Jiujiang Shanshui Technology 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 Jiujiang Shanshui i.e., Jiujiang Shanshui and China Petroleum go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and China Petroleum
Assuming the 90 days trading horizon Jiujiang Shanshui Technology is expected to generate 1.78 times more return on investment than China Petroleum. However, Jiujiang Shanshui is 1.78 times more volatile than China Petroleum Chemical. It trades about 0.09 of its potential returns per unit of risk. China Petroleum Chemical is currently generating about -0.07 per unit of risk. If you would invest 1,526 in Jiujiang Shanshui Technology on September 23, 2024 and sell it today you would earn a total of 98.00 from holding Jiujiang Shanshui Technology or generate 6.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Jiujiang Shanshui Technology vs. China Petroleum Chemical
Performance |
Timeline |
Jiujiang Shanshui |
China Petroleum Chemical |
Jiujiang Shanshui and China Petroleum Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiujiang Shanshui and China Petroleum
The main advantage of trading using opposite Jiujiang Shanshui and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui 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.Jiujiang Shanshui vs. Maoming Petro Chemical Shihua | Jiujiang Shanshui vs. Do Fluoride Chemicals Co | Jiujiang Shanshui vs. CSSC Offshore Marine | Jiujiang Shanshui vs. Shandong Polymer Biochemicals |
China Petroleum vs. Hubei Forbon Technology | China Petroleum vs. Guangzhou KingTeller Technology | China Petroleum vs. Jiujiang Shanshui Technology | China Petroleum vs. Allmed Medical Products |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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