Correlation Between China Petroleum and Zhende Medical
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By analyzing existing cross correlation between China Petroleum Chemical and Zhende Medical Co, you can compare the effects of market volatilities on China Petroleum and Zhende Medical 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 China Petroleum with a short position of Zhende Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Zhende Medical.
Diversification Opportunities for China Petroleum and Zhende Medical
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Zhende is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Zhende Medical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhende Medical and China Petroleum 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 China Petroleum Chemical are associated (or correlated) with Zhende Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhende Medical has no effect on the direction of China Petroleum i.e., China Petroleum and Zhende Medical go up and down completely randomly.
Pair Corralation between China Petroleum and Zhende Medical
Assuming the 90 days trading horizon China Petroleum is expected to generate 15.55 times less return on investment than Zhende Medical. But when comparing it to its historical volatility, China Petroleum Chemical is 4.46 times less risky than Zhende Medical. It trades about 0.12 of its potential returns per unit of risk. Zhende Medical Co is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 2,701 in Zhende Medical Co on September 6, 2025 and sell it today you would earn a total of 4,660 from holding Zhende Medical Co or generate 172.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Petroleum Chemical vs. Zhende Medical Co
Performance |
| Timeline |
| China Petroleum Chemical |
| Zhende Medical |
China Petroleum and Zhende Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Zhende Medical
The main advantage of trading using opposite China Petroleum and Zhende Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, Zhende Medical 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 Zhende Medical will offset losses from the drop in Zhende Medical's long position.| China Petroleum vs. Guilin Seamild Foods | China Petroleum vs. Jiajia Food Group | China Petroleum vs. Wintao Communications Co | China Petroleum vs. Huaxia Fund Management |
| Zhende Medical vs. Pengxin International Mining | Zhende Medical vs. Smartgiant Technology Co | Zhende Medical vs. Nsfocus Information Technology | Zhende Medical vs. Kingsignal Technology 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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