Correlation Between Aerospace and PetroChina
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By analyzing existing cross correlation between Aerospace Hi Tech Holding and PetroChina Co Ltd, you can compare the effects of market volatilities on Aerospace 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 Aerospace with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aerospace and PetroChina.
Diversification Opportunities for Aerospace and PetroChina
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aerospace and PetroChina is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Aerospace Hi Tech Holding and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Aerospace 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 Aerospace Hi Tech 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 Aerospace i.e., Aerospace and PetroChina go up and down completely randomly.
Pair Corralation between Aerospace and PetroChina
Assuming the 90 days trading horizon Aerospace Hi Tech Holding is expected to under-perform the PetroChina. In addition to that, Aerospace is 3.44 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 -0.12 per unit of volatility. If you would invest 820.00 in PetroChina Co Ltd on September 4, 2024 and sell it today you would lose (18.00) from holding PetroChina Co Ltd or give up 2.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aerospace Hi Tech Holding vs. PetroChina Co Ltd
Performance |
| Timeline |
| Aerospace Hi Tech |
| PetroChina |
Aerospace and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aerospace and PetroChina
The main advantage of trading using opposite Aerospace and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aerospace 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.| Aerospace vs. Cultural Investment Holdings | Aerospace vs. Gome Telecom Equipment | Aerospace vs. Bus Online Co | Aerospace vs. Holitech Technology Co |
| PetroChina vs. Sichuan Hebang Biotechnology | PetroChina vs. Guangdong Marubi Biotechnology | PetroChina vs. Shandong Sanyuan Biotechnology | PetroChina vs. Bloomage Biotechnology 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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