Correlation Between China Union and PetroChina
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By analyzing existing cross correlation between China Union Holdings and PetroChina Co Ltd, you can compare the effects of market volatilities on China Union and PetroChina 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 Union with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Union and PetroChina.
Diversification Opportunities for China Union and PetroChina
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and PetroChina is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding China Union Holdings and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and China Union 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 Union Holdings are associated (or correlated) with PetroChina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PetroChina has no effect on the direction of China Union i.e., China Union and PetroChina go up and down completely randomly.
Pair Corralation between China Union and PetroChina
Assuming the 90 days trading horizon China Union is expected to generate 13.81 times less return on investment than PetroChina. In addition to that, China Union is 1.12 times more volatile than PetroChina Co Ltd. It trades about 0.0 of its total potential returns per unit of risk. PetroChina Co Ltd is currently generating about 0.07 per unit of volatility. If you would invest 506.00 in PetroChina Co Ltd on October 15, 2024 and sell it today you would earn a total of 369.00 from holding PetroChina Co Ltd or generate 72.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Union Holdings vs. PetroChina Co Ltd
Performance |
| Timeline |
| China Union Holdings |
| PetroChina |
China Union and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Union and PetroChina
The main advantage of trading using opposite China Union and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Union position performs unexpectedly, PetroChina 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 PetroChina will offset losses from the drop in PetroChina's long position.| China Union vs. Hua Xia Bank | China Union vs. Postal Savings Bank | China Union vs. Unisplendour Corp | China Union vs. Bomesc Offshore Engineering |
| PetroChina vs. Qingdao Foods Co | PetroChina vs. Hubeiyichang Transportation Group | PetroChina vs. Guangdong Wens Foodstuff | PetroChina vs. Youyou Foods 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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