Correlation Between Changchun Faway and PetroChina
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By analyzing existing cross correlation between Changchun Faway Automobile and PetroChina Co Ltd, you can compare the effects of market volatilities on Changchun Faway 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 Changchun Faway with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun Faway and PetroChina.
Diversification Opportunities for Changchun Faway and PetroChina
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Changchun and PetroChina is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Changchun Faway Automobile and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Changchun Faway 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 Changchun Faway Automobile 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 Changchun Faway i.e., Changchun Faway and PetroChina go up and down completely randomly.
Pair Corralation between Changchun Faway and PetroChina
Assuming the 90 days trading horizon Changchun Faway Automobile is expected to generate 1.19 times more return on investment than PetroChina. However, Changchun Faway is 1.19 times more volatile than PetroChina Co Ltd. It trades about 0.02 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about 0.02 per unit of risk. If you would invest 899.00 in Changchun Faway Automobile on September 4, 2024 and sell it today you would earn a total of 56.00 from holding Changchun Faway Automobile or generate 6.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun Faway Automobile vs. PetroChina Co Ltd
Performance |
| Timeline |
| Changchun Faway Auto |
| PetroChina |
Changchun Faway and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun Faway and PetroChina
The main advantage of trading using opposite Changchun Faway and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun Faway 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.| Changchun Faway vs. Cultural Investment Holdings | Changchun Faway vs. Gome Telecom Equipment | Changchun Faway vs. Bus Online Co | Changchun Faway vs. Holitech Technology Co |
| PetroChina vs. Sichuan Hebang Biotechnology | PetroChina vs. Guangdong Marubi Biotechnology | PetroChina vs. Shandong Sanyuan Biotechnology | PetroChina vs. Bloomage Biotechnology Corp |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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