Correlation Between Contemporary Amperex and PetroChina
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By analyzing existing cross correlation between Contemporary Amperex Technology and PetroChina Co Ltd, you can compare the effects of market volatilities on Contemporary Amperex 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 Contemporary Amperex with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contemporary Amperex and PetroChina.
Diversification Opportunities for Contemporary Amperex and PetroChina
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Contemporary and PetroChina is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Contemporary Amperex Technolog and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Contemporary Amperex 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 Contemporary Amperex Technology 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 Contemporary Amperex i.e., Contemporary Amperex and PetroChina go up and down completely randomly.
Pair Corralation between Contemporary Amperex and PetroChina
Assuming the 90 days trading horizon Contemporary Amperex is expected to generate 2.88 times less return on investment than PetroChina. In addition to that, Contemporary Amperex is 1.21 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 502.00 in PetroChina Co Ltd on November 5, 2024 and sell it today you would earn a total of 331.00 from holding PetroChina Co Ltd or generate 65.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Contemporary Amperex Technolog vs. PetroChina Co Ltd
Performance |
| Timeline |
| Contemporary Amperex |
| PetroChina |
Contemporary Amperex and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contemporary Amperex and PetroChina
The main advantage of trading using opposite Contemporary Amperex and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contemporary Amperex 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.| Contemporary Amperex vs. China Everbright Bank | Contemporary Amperex vs. Runjian Communication Co | Contemporary Amperex vs. HeNan Splendor Science | Contemporary Amperex vs. Industrial Bank Co |
| PetroChina vs. Fujian Longzhou Transportation | PetroChina vs. Eyebright Medical Technology | PetroChina vs. Cabio Biotech Wuhan | PetroChina vs. Montage Technology 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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