Correlation Between Inner Mongolia and PetroChina
Specify exactly 2 symbols:
By analyzing existing cross correlation between Inner Mongolia Yuan and PetroChina Co Ltd, you can compare the effects of market volatilities on Inner Mongolia 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 Inner Mongolia with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inner Mongolia and PetroChina.
Diversification Opportunities for Inner Mongolia and PetroChina
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Inner and PetroChina is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Inner Mongolia Yuan and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Inner Mongolia 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 Inner Mongolia Yuan 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 Inner Mongolia i.e., Inner Mongolia and PetroChina go up and down completely randomly.
Pair Corralation between Inner Mongolia and PetroChina
Assuming the 90 days trading horizon Inner Mongolia Yuan is expected to under-perform the PetroChina. In addition to that, Inner Mongolia is 1.93 times more volatile than PetroChina Co Ltd. It trades about -0.39 of its total potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.04 per unit of volatility. If you would invest 811.00 in PetroChina Co Ltd on August 31, 2024 and sell it today you would lose (8.00) from holding PetroChina Co Ltd or give up 0.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inner Mongolia Yuan vs. PetroChina Co Ltd
Performance |
| Timeline |
| Inner Mongolia Yuan |
| PetroChina |
Inner Mongolia and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inner Mongolia and PetroChina
The main advantage of trading using opposite Inner Mongolia and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inner Mongolia 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.| Inner Mongolia vs. Xinjiang Communications Construction | Inner Mongolia vs. Qingdao Citymedia Co | Inner Mongolia vs. Dalian Zeus Entertainment | Inner Mongolia vs. Guangzhou Haige Communications |
| PetroChina vs. Zhejiang Kingland Pipeline | PetroChina vs. Gansu Jiu Steel | PetroChina vs. Ming Yang Smart | PetroChina vs. Aba Chemicals Corp |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |