Correlation Between Wonders Information and PetroChina
Specify exactly 2 symbols:
By analyzing existing cross correlation between Wonders Information and PetroChina Co Ltd, you can compare the effects of market volatilities on Wonders Information 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 Wonders Information with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wonders Information and PetroChina.
Diversification Opportunities for Wonders Information and PetroChina
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wonders and PetroChina is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Wonders Information and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Wonders Information 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 Wonders Information 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 Wonders Information i.e., Wonders Information and PetroChina go up and down completely randomly.
Pair Corralation between Wonders Information and PetroChina
Assuming the 90 days trading horizon Wonders Information is expected to generate 1.71 times less return on investment than PetroChina. In addition to that, Wonders Information is 1.98 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 0.06 per unit of volatility. If you would invest 495.00 in PetroChina Co Ltd on September 2, 2024 and sell it today you would earn a total of 309.00 from holding PetroChina Co Ltd or generate 62.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wonders Information vs. PetroChina Co Ltd
Performance |
| Timeline |
| Wonders Information |
| PetroChina |
Wonders Information and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wonders Information and PetroChina
The main advantage of trading using opposite Wonders Information and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wonders Information 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.| Wonders Information vs. China Petroleum Chemical | Wonders Information vs. PetroChina Co Ltd | Wonders Information vs. China State Construction | Wonders Information vs. China Railway Group |
| PetroChina vs. Zotye Automobile Co | PetroChina vs. Zhejiang Qianjiang Motorcycle | PetroChina vs. Miracll Chemicals Co | PetroChina vs. Bus Online Co |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |