Correlation Between Guocheng Mining and PetroChina
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By analyzing existing cross correlation between Guocheng Mining Co and PetroChina Co Ltd, you can compare the effects of market volatilities on Guocheng Mining 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 Guocheng Mining with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and PetroChina.
Diversification Opportunities for Guocheng Mining and PetroChina
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guocheng and PetroChina is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Guocheng Mining 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 Guocheng Mining Co 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 Guocheng Mining i.e., Guocheng Mining and PetroChina go up and down completely randomly.
Pair Corralation between Guocheng Mining and PetroChina
Assuming the 90 days trading horizon Guocheng Mining Co is expected to under-perform the PetroChina. In addition to that, Guocheng Mining is 1.36 times more volatile than PetroChina Co Ltd. It trades about -0.02 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 14, 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guocheng Mining Co vs. PetroChina Co Ltd
Performance |
| Timeline |
| Guocheng Mining |
| PetroChina |
Guocheng Mining and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and PetroChina
The main advantage of trading using opposite Guocheng Mining and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining 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.| Guocheng Mining vs. Jiangyin Jianghua Microelectronics | Guocheng Mining vs. Sihui Fuji Electronics | Guocheng Mining vs. Advanced Technology Materials | Guocheng Mining vs. Western Metal Materials |
| PetroChina vs. Shannon Semiconductor Technology | PetroChina vs. Qingdao Haier Biomedical | PetroChina vs. Shanghai V Test Semiconductor | PetroChina vs. Zhonghong Pulin Medical |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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