Correlation Between Guosheng Financial and PetroChina
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By analyzing existing cross correlation between Guosheng Financial Holding and PetroChina Co Ltd, you can compare the effects of market volatilities on Guosheng Financial 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 Guosheng Financial with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guosheng Financial and PetroChina.
Diversification Opportunities for Guosheng Financial and PetroChina
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guosheng and PetroChina is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Guosheng Financial Holding and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Guosheng Financial 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 Guosheng Financial Holding 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 Guosheng Financial i.e., Guosheng Financial and PetroChina go up and down completely randomly.
Pair Corralation between Guosheng Financial and PetroChina
Assuming the 90 days trading horizon Guosheng Financial Holding is expected to under-perform the PetroChina. In addition to that, Guosheng Financial is 2.79 times more volatile than PetroChina Co Ltd. It trades about -0.07 of its total potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.17 per unit of volatility. If you would invest 837.00 in PetroChina Co Ltd on August 29, 2024 and sell it today you would lose (35.00) from holding PetroChina Co Ltd or give up 4.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guosheng Financial Holding vs. PetroChina Co Ltd
Performance |
| Timeline |
| Guosheng Financial |
| PetroChina |
Guosheng Financial and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guosheng Financial and PetroChina
The main advantage of trading using opposite Guosheng Financial and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guosheng Financial 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.| Guosheng Financial vs. PetroChina Co Ltd | Guosheng Financial vs. China State Construction | Guosheng Financial vs. China Mobile Limited | Guosheng Financial vs. Industrial and Commercial |
| PetroChina vs. Guilin Seamild Foods | PetroChina vs. Great Sun Foods Co | PetroChina vs. Jiahe Foods Industry | PetroChina vs. Lander Sports Development |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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