Correlation Between Zhongtong Guomai and China Petroleum
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By analyzing existing cross correlation between Zhongtong Guomai Communication and China Petroleum Chemical, you can compare the effects of market volatilities on Zhongtong Guomai 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 Zhongtong Guomai with a short position of China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and China Petroleum.
Diversification Opportunities for Zhongtong Guomai and China Petroleum
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Zhongtong and China is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication 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 Zhongtong Guomai 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 Zhongtong Guomai Communication 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 Zhongtong Guomai i.e., Zhongtong Guomai and China Petroleum go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and China Petroleum
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to generate 2.32 times more return on investment than China Petroleum. However, Zhongtong Guomai is 2.32 times more volatile than China Petroleum Chemical. It trades about 0.2 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 770.00 in Zhongtong Guomai Communication on September 14, 2024 and sell it today you would earn a total of 384.00 from holding Zhongtong Guomai Communication or generate 49.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Zhongtong Guomai Communication vs. China Petroleum Chemical
Performance |
Timeline |
Zhongtong Guomai Com |
China Petroleum Chemical |
Zhongtong Guomai and China Petroleum Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhongtong Guomai and China Petroleum
The main advantage of trading using opposite Zhongtong Guomai and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai 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.Zhongtong Guomai vs. Fiberhome Telecommunication Technologies | Zhongtong Guomai vs. Kuang Chi Technologies | Zhongtong Guomai vs. Shenwu Energy Saving | Zhongtong Guomai vs. Agricultural Bank of |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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