Correlation Between Ningxia Xiaoming and PetroChina
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By analyzing existing cross correlation between Ningxia Xiaoming Agriculture and PetroChina Co Ltd, you can compare the effects of market volatilities on Ningxia Xiaoming 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 Ningxia Xiaoming with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Xiaoming and PetroChina.
Diversification Opportunities for Ningxia Xiaoming and PetroChina
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ningxia and PetroChina is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Xiaoming Agriculture and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Ningxia Xiaoming 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 Ningxia Xiaoming Agriculture 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 Ningxia Xiaoming i.e., Ningxia Xiaoming and PetroChina go up and down completely randomly.
Pair Corralation between Ningxia Xiaoming and PetroChina
Assuming the 90 days trading horizon Ningxia Xiaoming Agriculture is expected to generate 1.61 times more return on investment than PetroChina. However, Ningxia Xiaoming is 1.61 times more volatile than PetroChina Co Ltd. It trades about -0.09 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.18 per unit of risk. If you would invest 1,214 in Ningxia Xiaoming Agriculture on October 25, 2024 and sell it today you would lose (68.00) from holding Ningxia Xiaoming Agriculture or give up 5.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningxia Xiaoming Agriculture vs. PetroChina Co Ltd
Performance |
| Timeline |
| Ningxia Xiaoming Agr |
| PetroChina |
Ningxia Xiaoming and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Xiaoming and PetroChina
The main advantage of trading using opposite Ningxia Xiaoming and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Xiaoming 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.| Ningxia Xiaoming vs. Agricultural Bank of | Ningxia Xiaoming vs. Postal Savings Bank | Ningxia Xiaoming vs. Bank of Communications | Ningxia Xiaoming vs. China Merchants Bank |
| PetroChina vs. Anji Foodstuff Co | PetroChina vs. Puya Semiconductor Shanghai | PetroChina vs. Great Sun Foods Co | PetroChina vs. GRINM Semiconductor Materials |
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 CEOs Directory module to screen CEOs from public companies around the world.
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