Correlation Between Guangzhou Jointas and PetroChina
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By analyzing existing cross correlation between Guangzhou Jointas Chemical and PetroChina Co Ltd, you can compare the effects of market volatilities on Guangzhou Jointas 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 Jointas with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jointas and PetroChina.
Diversification Opportunities for Guangzhou Jointas and PetroChina
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangzhou and PetroChina is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jointas Chemical and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Guangzhou Jointas 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 Jointas Chemical 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 Jointas i.e., Guangzhou Jointas and PetroChina go up and down completely randomly.
Pair Corralation between Guangzhou Jointas and PetroChina
Assuming the 90 days trading horizon Guangzhou Jointas Chemical is expected to generate 3.47 times more return on investment than PetroChina. However, Guangzhou Jointas is 3.47 times more volatile than PetroChina Co Ltd. It trades about 0.2 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 496.00 in Guangzhou Jointas Chemical on September 5, 2024 and sell it today you would earn a total of 63.00 from holding Guangzhou Jointas Chemical or generate 12.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jointas Chemical vs. PetroChina Co Ltd
Performance |
| Timeline |
| Guangzhou Jointas |
| PetroChina |
Guangzhou Jointas and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jointas and PetroChina
The main advantage of trading using opposite Guangzhou Jointas and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jointas 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 Jointas vs. Zijin Mining Group | Guangzhou Jointas vs. Baoshan Iron Steel | Guangzhou Jointas vs. Rongsheng Petrochemical Co | Guangzhou Jointas vs. Shandong Gold Mining |
| 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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