Correlation Between Tianjin Hi and PetroChina
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By analyzing existing cross correlation between Tianjin Hi Tech Development and PetroChina Co Ltd, you can compare the effects of market volatilities on Tianjin Hi 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 Tianjin Hi with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Hi and PetroChina.
Diversification Opportunities for Tianjin Hi and PetroChina
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tianjin and PetroChina is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Hi Tech Development and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Tianjin Hi 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 Tianjin Hi Tech Development 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 Tianjin Hi i.e., Tianjin Hi and PetroChina go up and down completely randomly.
Pair Corralation between Tianjin Hi and PetroChina
Assuming the 90 days trading horizon Tianjin Hi Tech Development is expected to generate 2.88 times more return on investment than PetroChina. However, Tianjin Hi is 2.88 times more volatile than PetroChina Co Ltd. It trades about -0.01 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.17 per unit of risk. If you would invest 306.00 in Tianjin Hi Tech Development on August 28, 2024 and sell it today you would lose (5.00) from holding Tianjin Hi Tech Development or give up 1.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Hi Tech Development vs. PetroChina Co Ltd
Performance |
| Timeline |
| Tianjin Hi Tech |
| PetroChina |
Tianjin Hi and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Hi and PetroChina
The main advantage of trading using opposite Tianjin Hi and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Hi 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.| Tianjin Hi vs. Zhengzhou Qianweiyangchu Food | Tianjin Hi vs. Great Sun Foods Co | Tianjin Hi vs. Digital China Information | Tianjin Hi vs. Namchow Food Group |
| PetroChina vs. Sunwave Communications Co | PetroChina vs. City Development Environment | PetroChina vs. Gansu Jiu Steel | PetroChina vs. GreenTech Environmental 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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