Correlation Between Pengxin International and PetroChina
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By analyzing existing cross correlation between Pengxin International Mining and PetroChina Co Ltd, you can compare the effects of market volatilities on Pengxin International 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 Pengxin International with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and PetroChina.
Diversification Opportunities for Pengxin International and PetroChina
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Pengxin and PetroChina is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Pengxin International 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 Pengxin International 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 Pengxin International i.e., Pengxin International and PetroChina go up and down completely randomly.
Pair Corralation between Pengxin International and PetroChina
Assuming the 90 days trading horizon Pengxin International Mining is expected to generate 2.14 times more return on investment than PetroChina. However, Pengxin International is 2.14 times more volatile than PetroChina Co Ltd. It trades about -0.06 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 329.00 in Pengxin International Mining on November 3, 2024 and sell it today you would lose (14.00) from holding Pengxin International Mining or give up 4.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pengxin International Mining vs. PetroChina Co Ltd
Performance |
| Timeline |
| Pengxin International |
| PetroChina |
Pengxin International and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pengxin International and PetroChina
The main advantage of trading using opposite Pengxin International and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International 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.| Pengxin International vs. Zijin Mining Group | Pengxin International vs. Wanhua Chemical Group | Pengxin International vs. Baoshan Iron Steel | Pengxin International vs. Shandong Gold Mining |
| PetroChina vs. Guangdong Transtek Medical | PetroChina vs. Xiangyu Medical Co | PetroChina vs. Shenzhen Glory Medical | PetroChina vs. Allgens Medical Technology |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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