Correlation Between Bank of Suzhou and PetroChina
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By analyzing existing cross correlation between Bank of Suzhou and PetroChina Co Ltd, you can compare the effects of market volatilities on Bank of Suzhou 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 Bank of Suzhou with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Suzhou and PetroChina.
Diversification Opportunities for Bank of Suzhou and PetroChina
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and PetroChina is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Suzhou and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Bank of Suzhou 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 Bank of Suzhou 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 Bank of Suzhou i.e., Bank of Suzhou and PetroChina go up and down completely randomly.
Pair Corralation between Bank of Suzhou and PetroChina
Assuming the 90 days trading horizon Bank of Suzhou is expected to generate 3.34 times less return on investment than PetroChina. But when comparing it to its historical volatility, Bank of Suzhou is 1.7 times less risky than PetroChina. It trades about 0.15 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 803.00 in PetroChina Co Ltd on September 28, 2024 and sell it today you would earn a total of 89.00 from holding PetroChina Co Ltd or generate 11.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bank of Suzhou vs. PetroChina Co Ltd
Performance |
| Timeline |
| Bank of Suzhou |
| PetroChina |
Bank of Suzhou and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Suzhou and PetroChina
The main advantage of trading using opposite Bank of Suzhou and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Suzhou 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.| Bank of Suzhou vs. BYD Co Ltd | Bank of Suzhou vs. China Mobile Limited | Bank of Suzhou vs. Agricultural Bank of | Bank of Suzhou vs. Industrial and Commercial |
| PetroChina vs. Ping An Insurance | PetroChina vs. Qilu Bank Co | PetroChina vs. China Construction Bank | PetroChina vs. Bank of Suzhou |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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