Correlation Between China Petroleum and ENEOS Holdings
Can any of the company-specific risk be diversified away by investing in both China Petroleum and ENEOS Holdings at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining China Petroleum and ENEOS Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Petroleum Chemical and ENEOS Holdings, you can compare the effects of market volatilities on China Petroleum and ENEOS Holdings 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 ENEOS Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and ENEOS Holdings.
Diversification Opportunities for China Petroleum and ENEOS Holdings
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and ENEOS is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and ENEOS Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENEOS Holdings 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 ENEOS Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENEOS Holdings has no effect on the direction of China Petroleum i.e., China Petroleum and ENEOS Holdings go up and down completely randomly.
Pair Corralation between China Petroleum and ENEOS Holdings
Assuming the 90 days horizon China Petroleum is expected to generate 7.11 times less return on investment than ENEOS Holdings. In addition to that, China Petroleum is 2.02 times more volatile than ENEOS Holdings. It trades about 0.02 of its total potential returns per unit of risk. ENEOS Holdings is currently generating about 0.24 per unit of volatility. If you would invest 527.00 in ENEOS Holdings on September 3, 2025 and sell it today you would earn a total of 149.00 from holding ENEOS Holdings or generate 28.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Petroleum Chemical vs. ENEOS Holdings
Performance |
| Timeline |
| China Petroleum Chemical |
| ENEOS Holdings |
China Petroleum and ENEOS Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and ENEOS Holdings
The main advantage of trading using opposite China Petroleum and ENEOS Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum position performs unexpectedly, ENEOS Holdings 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 ENEOS Holdings will offset losses from the drop in ENEOS Holdings' long position.| China Petroleum vs. Strategic Management and | China Petroleum vs. Apollo Global Management | China Petroleum vs. Waste Management | China Petroleum vs. Altisource Asset Management |
| ENEOS Holdings vs. Ironstone Group | ENEOS Holdings vs. CECO Environmental Corp | ENEOS Holdings vs. AeroVironment | ENEOS Holdings vs. China Petroleum Chemical |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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