Correlation Between Guangzhou Haozhi and PetroChina
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By analyzing existing cross correlation between Guangzhou Haozhi Industrial and PetroChina Co Ltd, you can compare the effects of market volatilities on Guangzhou Haozhi 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 Haozhi with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haozhi and PetroChina.
Diversification Opportunities for Guangzhou Haozhi and PetroChina
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guangzhou and PetroChina is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haozhi Industrial and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Guangzhou Haozhi 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 Haozhi Industrial 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 Haozhi i.e., Guangzhou Haozhi and PetroChina go up and down completely randomly.
Pair Corralation between Guangzhou Haozhi and PetroChina
Assuming the 90 days trading horizon Guangzhou Haozhi Industrial is expected to under-perform the PetroChina. In addition to that, Guangzhou Haozhi is 3.07 times more volatile than PetroChina Co Ltd. It trades about -0.07 of its total potential returns per unit of risk. PetroChina Co Ltd is currently generating about 0.15 per unit of volatility. If you would invest 845.00 in PetroChina Co Ltd on October 17, 2024 and sell it today you would earn a total of 41.00 from holding PetroChina Co Ltd or generate 4.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haozhi Industrial vs. PetroChina Co Ltd
Performance |
| Timeline |
| Guangzhou Haozhi Ind |
| PetroChina |
Guangzhou Haozhi and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haozhi and PetroChina
The main advantage of trading using opposite Guangzhou Haozhi and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haozhi 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 Haozhi vs. Iat Automobile Technology | Guangzhou Haozhi vs. Sublime China Information | Guangzhou Haozhi vs. Haima Automobile Group | Guangzhou Haozhi vs. Chongqing Changan Automobile |
| PetroChina vs. Ningbo Fujia Industrial | PetroChina vs. Guangzhou Haozhi Industrial | PetroChina vs. Guangdong Jingyi Metal | PetroChina vs. Iat Automobile Technology |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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