Correlation Between Kuang Chi and PetroChina
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By analyzing existing cross correlation between Kuang Chi Technologies and PetroChina Co Ltd, you can compare the effects of market volatilities on Kuang Chi 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 Kuang Chi with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and PetroChina.
Diversification Opportunities for Kuang Chi and PetroChina
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kuang and PetroChina is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Kuang Chi 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 Kuang Chi Technologies 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 Kuang Chi i.e., Kuang Chi and PetroChina go up and down completely randomly.
Pair Corralation between Kuang Chi and PetroChina
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to generate 5.83 times more return on investment than PetroChina. However, Kuang Chi is 5.83 times more volatile than PetroChina Co Ltd. It trades about 0.01 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 4,069 in Kuang Chi Technologies on September 3, 2024 and sell it today you would lose (56.00) from holding Kuang Chi Technologies or give up 1.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuang Chi Technologies vs. PetroChina Co Ltd
Performance |
| Timeline |
| Kuang Chi Technologies |
| PetroChina |
Kuang Chi and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and PetroChina
The main advantage of trading using opposite Kuang Chi and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi 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.| Kuang Chi vs. PetroChina Co Ltd | Kuang Chi vs. China Mobile Limited | Kuang Chi vs. Industrial and Commercial | Kuang Chi 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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