Correlation Between Wasu Media and PetroChina
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By analyzing existing cross correlation between Wasu Media Holding and PetroChina Co Ltd, you can compare the effects of market volatilities on Wasu Media 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 Wasu Media with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wasu Media and PetroChina.
Diversification Opportunities for Wasu Media and PetroChina
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Wasu and PetroChina is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Wasu Media Holding and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Wasu Media 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 Wasu Media Holding 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 Wasu Media i.e., Wasu Media and PetroChina go up and down completely randomly.
Pair Corralation between Wasu Media and PetroChina
Assuming the 90 days trading horizon Wasu Media is expected to generate 1.34 times less return on investment than PetroChina. In addition to that, Wasu Media is 1.91 times more volatile than PetroChina Co Ltd. It trades about 0.07 of its total potential returns per unit of risk. PetroChina Co Ltd is currently generating about 0.18 per unit of volatility. If you would invest 807.00 in PetroChina Co Ltd on September 14, 2024 and sell it today you would earn a total of 38.00 from holding PetroChina Co Ltd or generate 4.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wasu Media Holding vs. PetroChina Co Ltd
Performance |
| Timeline |
| Wasu Media Holding |
| PetroChina |
Wasu Media and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wasu Media and PetroChina
The main advantage of trading using opposite Wasu Media and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wasu Media 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.| Wasu Media vs. Lutian Machinery Co | Wasu Media vs. PetroChina Co Ltd | Wasu Media vs. Bank of China | Wasu Media vs. China Citic Bank |
| PetroChina vs. Sportsoul Co Ltd | PetroChina vs. Dook Media Group | PetroChina vs. Focus Media Information | PetroChina vs. Wasu Media Holding |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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