Correlation Between Songz Automobile and PetroChina
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By analyzing existing cross correlation between Songz Automobile Air and PetroChina Co Ltd, you can compare the effects of market volatilities on Songz Automobile 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 Songz Automobile with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Songz Automobile and PetroChina.
Diversification Opportunities for Songz Automobile and PetroChina
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Songz and PetroChina is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Songz Automobile Air and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Songz Automobile 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 Songz Automobile Air 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 Songz Automobile i.e., Songz Automobile and PetroChina go up and down completely randomly.
Pair Corralation between Songz Automobile and PetroChina
Assuming the 90 days trading horizon Songz Automobile Air is expected to generate 2.65 times more return on investment than PetroChina. However, Songz Automobile is 2.65 times more volatile than PetroChina Co Ltd. It trades about 0.0 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.11 per unit of risk. If you would invest 693.00 in Songz Automobile Air on September 3, 2024 and sell it today you would lose (4.00) from holding Songz Automobile Air or give up 0.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Songz Automobile Air vs. PetroChina Co Ltd
Performance |
| Timeline |
| Songz Automobile Air |
| PetroChina |
Songz Automobile and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Songz Automobile and PetroChina
The main advantage of trading using opposite Songz Automobile and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Songz Automobile 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.| Songz Automobile vs. PetroChina Co Ltd | Songz Automobile vs. China Mobile Limited | Songz Automobile vs. Industrial and Commercial | Songz Automobile 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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