Correlation Between Tianjin Pengling and PetroChina
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By analyzing existing cross correlation between Tianjin Pengling Rubber and PetroChina Co Ltd, you can compare the effects of market volatilities on Tianjin Pengling 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 Tianjin Pengling with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Pengling and PetroChina.
Diversification Opportunities for Tianjin Pengling and PetroChina
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Tianjin and PetroChina is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Pengling Rubber and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Tianjin Pengling 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 Tianjin Pengling Rubber 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 Tianjin Pengling i.e., Tianjin Pengling and PetroChina go up and down completely randomly.
Pair Corralation between Tianjin Pengling and PetroChina
Assuming the 90 days trading horizon Tianjin Pengling Rubber is expected to generate 1.95 times more return on investment than PetroChina. However, Tianjin Pengling is 1.95 times more volatile than PetroChina Co Ltd. It trades about 0.1 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.08 per unit of risk. If you would invest 478.00 in Tianjin Pengling Rubber on September 12, 2024 and sell it today you would earn a total of 47.00 from holding Tianjin Pengling Rubber or generate 9.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Pengling Rubber vs. PetroChina Co Ltd
Performance |
| Timeline |
| Tianjin Pengling Rubber |
| PetroChina |
Tianjin Pengling and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Pengling and PetroChina
The main advantage of trading using opposite Tianjin Pengling and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Pengling 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.| Tianjin Pengling vs. Lutian Machinery Co | Tianjin Pengling vs. PetroChina Co Ltd | Tianjin Pengling vs. Bank of China | Tianjin Pengling vs. Gansu Jiu Steel |
| PetroChina vs. Digital China Information | PetroChina vs. DO Home Collection | PetroChina vs. Tongding Interconnection Information | PetroChina vs. Guangzhou Dongfang Hotel |
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 Stocks Directory module to find actively traded stocks across global markets.
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