Correlation Between China Enterprise and PetroChina
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By analyzing existing cross correlation between China Enterprise Co and PetroChina Co Ltd, you can compare the effects of market volatilities on China Enterprise 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 China Enterprise with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Enterprise and PetroChina.
Diversification Opportunities for China Enterprise and PetroChina
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and PetroChina is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding China Enterprise Co and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and China Enterprise 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 China Enterprise Co 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 China Enterprise i.e., China Enterprise and PetroChina go up and down completely randomly.
Pair Corralation between China Enterprise and PetroChina
Assuming the 90 days trading horizon China Enterprise Co is expected to under-perform the PetroChina. In addition to that, China Enterprise is 1.7 times more volatile than PetroChina Co Ltd. It trades about -0.09 of its total potential returns per unit of risk. PetroChina Co Ltd is currently generating about 0.17 per unit of volatility. If you would invest 815.00 in PetroChina Co Ltd on October 18, 2024 and sell it today you would earn a total of 85.00 from holding PetroChina Co Ltd or generate 10.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Enterprise Co vs. PetroChina Co Ltd
Performance |
| Timeline |
| China Enterprise |
| PetroChina |
China Enterprise and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Enterprise and PetroChina
The main advantage of trading using opposite China Enterprise and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Enterprise 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.| China Enterprise vs. Jinhui Mining Co | China Enterprise vs. China Asset Management | China Enterprise vs. Chengtun Mining Group | China Enterprise vs. JCHX Mining Management |
| PetroChina vs. Dr Peng Telecom | PetroChina vs. China Satellite Communications | PetroChina vs. Fiberhome Telecommunication Technologies | PetroChina vs. Tianshui Huatian 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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