Correlation Between Changchun and PetroChina
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By analyzing existing cross correlation between Changchun UP Optotech and PetroChina Co Ltd, you can compare the effects of market volatilities on Changchun 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 Changchun with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun and PetroChina.
Diversification Opportunities for Changchun and PetroChina
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Changchun and PetroChina is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Changchun UP Optotech and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Changchun 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 Changchun UP Optotech 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 Changchun i.e., Changchun and PetroChina go up and down completely randomly.
Pair Corralation between Changchun and PetroChina
Assuming the 90 days trading horizon Changchun UP Optotech is expected to under-perform the PetroChina. In addition to that, Changchun is 4.53 times more volatile than PetroChina Co Ltd. It trades about -0.01 of its total potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.03 per unit of volatility. If you would invest 810.00 in PetroChina Co Ltd on September 1, 2024 and sell it today you would lose (6.00) from holding PetroChina Co Ltd or give up 0.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun UP Optotech vs. PetroChina Co Ltd
Performance |
| Timeline |
| Changchun UP Optotech |
| PetroChina |
Changchun and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun and PetroChina
The main advantage of trading using opposite Changchun and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun 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.| Changchun vs. Zhongshan Public Utilities | Changchun vs. Harvest Fund Management | Changchun vs. Offshore Oil Engineering | Changchun vs. Xinjiang Beixin RoadBridge |
| PetroChina vs. Dongjiang Environmental Co | PetroChina vs. Tonghua Grape Wine | PetroChina vs. Dezhan HealthCare Co | PetroChina vs. Guangdong Liantai Environmental |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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