Correlation Between Qingdao Foods and PetroChina
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By analyzing existing cross correlation between Qingdao Foods Co and PetroChina Co Ltd, you can compare the effects of market volatilities on Qingdao Foods 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 Qingdao Foods with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Foods and PetroChina.
Diversification Opportunities for Qingdao Foods and PetroChina
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Qingdao and PetroChina is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Foods Co and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Qingdao Foods 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 Qingdao Foods 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 Qingdao Foods i.e., Qingdao Foods and PetroChina go up and down completely randomly.
Pair Corralation between Qingdao Foods and PetroChina
Assuming the 90 days trading horizon Qingdao Foods is expected to generate 13.15 times less return on investment than PetroChina. In addition to that, Qingdao Foods 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 16, 2024 and sell it today you would earn a total of 381.00 from holding PetroChina Co Ltd or generate 75.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Qingdao Foods Co vs. PetroChina Co Ltd
Performance |
Timeline |
Qingdao Foods |
PetroChina |
Qingdao Foods and PetroChina Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Qingdao Foods and PetroChina
The main advantage of trading using opposite Qingdao Foods and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Foods 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.Qingdao Foods vs. Unisplendour Corp | Qingdao Foods vs. Strait Innovation Internet | Qingdao Foods vs. Wuhan Yangtze Communication | Qingdao Foods vs. Jonjee Hi tech Industrial |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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