Correlation Between Konfoong Materials and PetroChina
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By analyzing existing cross correlation between Konfoong Materials International and PetroChina Co Ltd, you can compare the effects of market volatilities on Konfoong Materials 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 Konfoong Materials with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konfoong Materials and PetroChina.
Diversification Opportunities for Konfoong Materials and PetroChina
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Konfoong and PetroChina is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Konfoong Materials Internation and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Konfoong Materials 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 Konfoong Materials International 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 Konfoong Materials i.e., Konfoong Materials and PetroChina go up and down completely randomly.
Pair Corralation between Konfoong Materials and PetroChina
Assuming the 90 days trading horizon Konfoong Materials International is expected to generate 1.47 times more return on investment than PetroChina. However, Konfoong Materials is 1.47 times more volatile than PetroChina Co Ltd. It trades about 0.04 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.23 per unit of risk. If you would invest 6,945 in Konfoong Materials International on November 1, 2024 and sell it today you would earn a total of 84.00 from holding Konfoong Materials International or generate 1.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Konfoong Materials Internation vs. PetroChina Co Ltd
Performance |
| Timeline |
| Konfoong Materials |
| PetroChina |
Konfoong Materials and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konfoong Materials and PetroChina
The main advantage of trading using opposite Konfoong Materials and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konfoong Materials 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.| Konfoong Materials vs. Hainan Mining Co | Konfoong Materials vs. Jinhui Mining Co | Konfoong Materials vs. Road Environment Technology | Konfoong Materials vs. Jiangxi Naipu Mining |
| PetroChina vs. Shenzhen Glory Medical | PetroChina vs. CareRay Digital Medical | PetroChina vs. Chison Medical Technologies | PetroChina vs. Touchstone International Medical |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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