Correlation Between Guangdong Jinma and PetroChina
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By analyzing existing cross correlation between Guangdong Jinma Entertainment and PetroChina Co Ltd, you can compare the effects of market volatilities on Guangdong Jinma 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 Guangdong Jinma with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jinma and PetroChina.
Diversification Opportunities for Guangdong Jinma and PetroChina
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangdong and PetroChina is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jinma Entertainment and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Guangdong Jinma 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 Guangdong Jinma Entertainment 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 Guangdong Jinma i.e., Guangdong Jinma and PetroChina go up and down completely randomly.
Pair Corralation between Guangdong Jinma and PetroChina
Assuming the 90 days trading horizon Guangdong Jinma is expected to generate 1.3 times less return on investment than PetroChina. In addition to that, Guangdong Jinma is 1.69 times more volatile than PetroChina Co Ltd. It trades about 0.01 of its total potential returns per unit of risk. PetroChina Co Ltd is currently generating about 0.02 per unit of volatility. If you would invest 756.00 in PetroChina Co Ltd on September 4, 2024 and sell it today you would earn a total of 46.00 from holding PetroChina Co Ltd or generate 6.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jinma Entertainment vs. PetroChina Co Ltd
Performance |
| Timeline |
| Guangdong Jinma Ente |
| PetroChina |
Guangdong Jinma and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jinma and PetroChina
The main advantage of trading using opposite Guangdong Jinma and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jinma 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.| Guangdong Jinma vs. BeiGene | Guangdong Jinma vs. Kweichow Moutai Co | Guangdong Jinma vs. Beijing Roborock Technology | Guangdong Jinma vs. G bits Network Technology |
| PetroChina vs. Sichuan Hebang Biotechnology | PetroChina vs. Guangdong Marubi Biotechnology | PetroChina vs. Shandong Sanyuan Biotechnology | PetroChina vs. Bloomage Biotechnology Corp |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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