Correlation Between De Rucci and PetroChina
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By analyzing existing cross correlation between De Rucci Healthy and PetroChina Co Ltd, you can compare the effects of market volatilities on De Rucci 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 De Rucci with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of De Rucci and PetroChina.
Diversification Opportunities for De Rucci and PetroChina
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 001323 and PetroChina is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding De Rucci Healthy and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and De Rucci 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 De Rucci Healthy 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 De Rucci i.e., De Rucci and PetroChina go up and down completely randomly.
Pair Corralation between De Rucci and PetroChina
Assuming the 90 days trading horizon De Rucci Healthy is expected to generate 1.0 times more return on investment than PetroChina. However, De Rucci Healthy is 1.0 times less risky than PetroChina. It trades about 0.07 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.07 per unit of risk. If you would invest 3,339 in De Rucci Healthy on September 3, 2024 and sell it today you would earn a total of 663.00 from holding De Rucci Healthy or generate 19.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
De Rucci Healthy vs. PetroChina Co Ltd
Performance |
| Timeline |
| De Rucci Healthy |
| PetroChina |
De Rucci and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with De Rucci and PetroChina
The main advantage of trading using opposite De Rucci and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if De Rucci 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.| De Rucci vs. PetroChina Co Ltd | De Rucci vs. China Mobile Limited | De Rucci vs. Industrial and Commercial | De Rucci vs. China Life Insurance |
| PetroChina vs. China Express Airlines | PetroChina vs. Xinhua Winshare Publishing | PetroChina vs. Jinhui Liquor Co | PetroChina vs. Beijing Kaiwen Education |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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