Correlation Between Guangxi Guiguan and PetroChina
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By analyzing existing cross correlation between Guangxi Guiguan Electric and PetroChina Co Ltd, you can compare the effects of market volatilities on Guangxi Guiguan 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 Guangxi Guiguan with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Guiguan and PetroChina.
Diversification Opportunities for Guangxi Guiguan and PetroChina
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangxi and PetroChina is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Guiguan Electric and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Guangxi Guiguan 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 Guangxi Guiguan Electric 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 Guangxi Guiguan i.e., Guangxi Guiguan and PetroChina go up and down completely randomly.
Pair Corralation between Guangxi Guiguan and PetroChina
Assuming the 90 days trading horizon Guangxi Guiguan Electric is expected to generate 0.92 times more return on investment than PetroChina. However, Guangxi Guiguan Electric is 1.09 times less risky than PetroChina. It trades about -0.2 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.24 per unit of risk. If you would invest 675.00 in Guangxi Guiguan Electric on October 31, 2024 and sell it today you would lose (39.00) from holding Guangxi Guiguan Electric or give up 5.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Guiguan Electric vs. PetroChina Co Ltd
Performance |
| Timeline |
| Guangxi Guiguan Electric |
| PetroChina |
Guangxi Guiguan and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Guiguan and PetroChina
The main advantage of trading using opposite Guangxi Guiguan and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Guiguan 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.| Guangxi Guiguan vs. Jiangxi Hengda Hi Tech | Guangxi Guiguan vs. Fujian Newland Computer | Guangxi Guiguan vs. Suzhou Industrial Park | Guangxi Guiguan vs. Unisplendour Corp |
| PetroChina vs. Quectel Wireless Solutions | PetroChina vs. Orinko Advanced Plastics | PetroChina vs. Gansu Huangtai Wine marketing | PetroChina vs. Konfoong Materials International |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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