Correlation Between Guangzhou Shiyuan and PetroChina
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By analyzing existing cross correlation between Guangzhou Shiyuan Electronic and PetroChina Co Ltd, you can compare the effects of market volatilities on Guangzhou Shiyuan 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 Guangzhou Shiyuan with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Shiyuan and PetroChina.
Diversification Opportunities for Guangzhou Shiyuan and PetroChina
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guangzhou and PetroChina is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Shiyuan Electronic and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Guangzhou Shiyuan 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 Guangzhou Shiyuan Electronic 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 Guangzhou Shiyuan i.e., Guangzhou Shiyuan and PetroChina go up and down completely randomly.
Pair Corralation between Guangzhou Shiyuan and PetroChina
Assuming the 90 days trading horizon Guangzhou Shiyuan Electronic is expected to under-perform the PetroChina. In addition to that, Guangzhou Shiyuan is 1.16 times more volatile than PetroChina Co Ltd. It trades about -0.02 of its total potential returns per unit of risk. PetroChina Co Ltd is currently generating about 0.07 per unit of volatility. If you would invest 484.00 in PetroChina Co Ltd on September 13, 2024 and sell it today you would earn a total of 361.00 from holding PetroChina Co Ltd or generate 74.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Shiyuan Electronic vs. PetroChina Co Ltd
Performance |
| Timeline |
| Guangzhou Shiyuan |
| PetroChina |
Guangzhou Shiyuan and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Shiyuan and PetroChina
The main advantage of trading using opposite Guangzhou Shiyuan and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Shiyuan 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.| Guangzhou Shiyuan vs. Henan Shuanghui Investment | Guangzhou Shiyuan vs. Zhejiang Construction Investment | Guangzhou Shiyuan vs. Hunan Investment Group | Guangzhou Shiyuan vs. China Asset Management |
| PetroChina vs. Ningxia Building Materials | PetroChina vs. Chongqing Sulian Plastic | PetroChina vs. Guangzhou Tinci Materials | PetroChina vs. Tianjin Pengling Rubber |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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