Correlation Between Jiangsu Changfa and PetroChina
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By analyzing existing cross correlation between Jiangsu Changfa Refrigeration and PetroChina Co Ltd, you can compare the effects of market volatilities on Jiangsu Changfa 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 Jiangsu Changfa with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Changfa and PetroChina.
Diversification Opportunities for Jiangsu Changfa and PetroChina
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jiangsu and PetroChina is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Changfa Refrigeration and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Jiangsu Changfa 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 Jiangsu Changfa Refrigeration 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 Jiangsu Changfa i.e., Jiangsu Changfa and PetroChina go up and down completely randomly.
Pair Corralation between Jiangsu Changfa and PetroChina
Assuming the 90 days trading horizon Jiangsu Changfa Refrigeration is expected to generate 3.24 times more return on investment than PetroChina. However, Jiangsu Changfa is 3.24 times more volatile than PetroChina Co Ltd. It trades about 0.03 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.06 per unit of risk. If you would invest 487.00 in Jiangsu Changfa Refrigeration on September 5, 2024 and sell it today you would earn a total of 4.00 from holding Jiangsu Changfa Refrigeration or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Jiangsu Changfa Refrigeration vs. PetroChina Co Ltd
Performance |
| Timeline |
| Jiangsu Changfa Refr |
| PetroChina |
Jiangsu Changfa and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Changfa and PetroChina
The main advantage of trading using opposite Jiangsu Changfa and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Changfa 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.| Jiangsu Changfa vs. PetroChina Co Ltd | Jiangsu Changfa vs. China Mobile Limited | Jiangsu Changfa vs. CNOOC Limited | Jiangsu Changfa vs. Ping An Insurance |
| PetroChina vs. Aofu Environmental Technology | PetroChina vs. Bengang Steel Plates | PetroChina vs. Guangzhou Jointas Chemical | PetroChina vs. Shenyang Chemical Industry |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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