Correlation Between NYSE Composite and Sinopec Oilfield
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Sinopec Oilfield 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 NYSE Composite and Sinopec Oilfield into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Sinopec Oilfield Service, you can compare the effects of market volatilities on NYSE Composite and Sinopec Oilfield 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 NYSE Composite with a short position of Sinopec Oilfield. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Sinopec Oilfield.
Diversification Opportunities for NYSE Composite and Sinopec Oilfield
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and Sinopec is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Sinopec Oilfield Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinopec Oilfield Service and NYSE Composite 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 NYSE Composite are associated (or correlated) with Sinopec Oilfield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinopec Oilfield Service has no effect on the direction of NYSE Composite i.e., NYSE Composite and Sinopec Oilfield go up and down completely randomly.
Pair Corralation between NYSE Composite and Sinopec Oilfield
If you would invest 6.30 in Sinopec Oilfield Service on February 6, 2024 and sell it today you would earn a total of 0.00 from holding Sinopec Oilfield Service or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.24% |
Values | Daily Returns |
NYSE Composite vs. Sinopec Oilfield Service
Performance |
Timeline |
NYSE Composite and Sinopec Oilfield Volatility Contrast
Predicted Return Density |
Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Sinopec Oilfield Service
Pair trading matchups for Sinopec Oilfield
Pair Trading with NYSE Composite and Sinopec Oilfield
The main advantage of trading using opposite NYSE Composite and Sinopec Oilfield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Sinopec Oilfield 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 Sinopec Oilfield will offset losses from the drop in Sinopec Oilfield's long position.NYSE Composite vs. Ambev SA ADR | NYSE Composite vs. National Beverage Corp | NYSE Composite vs. Tradeweb Markets | NYSE Composite vs. Coty Inc |
Sinopec Oilfield vs. Microsoft | Sinopec Oilfield vs. Apple Inc | Sinopec Oilfield vs. NVIDIA | Sinopec Oilfield vs. Alphabet Inc Class C |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |