Correlation Between Chengdu Spaceon and PetroChina
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By analyzing existing cross correlation between Chengdu Spaceon Electronics and PetroChina Co Ltd, you can compare the effects of market volatilities on Chengdu Spaceon 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 Chengdu Spaceon with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Spaceon and PetroChina.
Diversification Opportunities for Chengdu Spaceon and PetroChina
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chengdu and PetroChina is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Spaceon Electronics and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Chengdu Spaceon 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 Chengdu Spaceon Electronics 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 Chengdu Spaceon i.e., Chengdu Spaceon and PetroChina go up and down completely randomly.
Pair Corralation between Chengdu Spaceon and PetroChina
Assuming the 90 days trading horizon Chengdu Spaceon Electronics is expected to under-perform the PetroChina. In addition to that, Chengdu Spaceon is 1.33 times more volatile than PetroChina Co Ltd. It trades about -0.2 of its total potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.04 per unit of volatility. If you would invest 858.00 in PetroChina Co Ltd on October 24, 2024 and sell it today you would lose (13.00) from holding PetroChina Co Ltd or give up 1.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Spaceon Electronics vs. PetroChina Co Ltd
Performance |
| Timeline |
| Chengdu Spaceon Elec |
| PetroChina |
Chengdu Spaceon and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Spaceon and PetroChina
The main advantage of trading using opposite Chengdu Spaceon and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Spaceon 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.| Chengdu Spaceon vs. Tsingtao Brewery Co | Chengdu Spaceon vs. Shandong Polymer Biochemicals | Chengdu Spaceon vs. Shijiazhuang Tonhe Electronics | Chengdu Spaceon vs. Chongqing Brewery Co |
| PetroChina vs. Zijin Mining Group | PetroChina vs. Jinhui Mining Co | PetroChina vs. Tianjin Silvery Dragon | PetroChina vs. Jiangxi Naipu Mining |
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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