Correlation Between Jiangxi Naipu and PetroChina
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By analyzing existing cross correlation between Jiangxi Naipu Mining and PetroChina Co Ltd, you can compare the effects of market volatilities on Jiangxi Naipu 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 Jiangxi Naipu with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Naipu and PetroChina.
Diversification Opportunities for Jiangxi Naipu and PetroChina
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jiangxi and PetroChina is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Naipu Mining and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Jiangxi Naipu 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 Jiangxi Naipu Mining 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 Jiangxi Naipu i.e., Jiangxi Naipu and PetroChina go up and down completely randomly.
Pair Corralation between Jiangxi Naipu and PetroChina
Assuming the 90 days trading horizon Jiangxi Naipu Mining is expected to under-perform the PetroChina. In addition to that, Jiangxi Naipu is 1.2 times more volatile than PetroChina Co Ltd. It trades about -0.18 of its total potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.04 per unit of volatility. If you would invest 858.00 in PetroChina Co Ltd on October 24, 2024 and sell it today you would lose (13.00) from holding PetroChina Co Ltd or give up 1.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Naipu Mining vs. PetroChina Co Ltd
Performance |
| Timeline |
| Jiangxi Naipu Mining |
| PetroChina |
Jiangxi Naipu and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Naipu and PetroChina
The main advantage of trading using opposite Jiangxi Naipu and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Naipu 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.| Jiangxi Naipu vs. ZJBC Information Technology | Jiangxi Naipu vs. Beijing Sanyuan Foods | Jiangxi Naipu vs. Eastroc Beverage Group | Jiangxi Naipu vs. HaiXin Foods Co |
| PetroChina vs. Zijin Mining Group | PetroChina vs. Jinhui Mining Co | PetroChina vs. Tianjin Silvery Dragon | PetroChina vs. Jiangxi Naipu Mining |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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