Correlation Between Dr Peng and PetroChina
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By analyzing existing cross correlation between Dr Peng Telecom and PetroChina Co Ltd, you can compare the effects of market volatilities on Dr Peng 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 Dr Peng with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dr Peng and PetroChina.
Diversification Opportunities for Dr Peng and PetroChina
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between 600804 and PetroChina is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Dr Peng Telecom and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Dr Peng 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 Dr Peng Telecom 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 Dr Peng i.e., Dr Peng and PetroChina go up and down completely randomly.
Pair Corralation between Dr Peng and PetroChina
Assuming the 90 days trading horizon Dr Peng is expected to generate 1.05 times less return on investment than PetroChina. In addition to that, Dr Peng is 2.67 times more volatile than PetroChina Co Ltd. It trades about 0.06 of its total potential returns per unit of risk. PetroChina Co Ltd is currently generating about 0.18 per unit of volatility. If you would invest 851.00 in PetroChina Co Ltd on October 19, 2024 and sell it today you would earn a total of 49.00 from holding PetroChina Co Ltd or generate 5.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dr Peng Telecom vs. PetroChina Co Ltd
Performance |
| Timeline |
| Dr Peng Telecom |
| PetroChina |
Dr Peng and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dr Peng and PetroChina
The main advantage of trading using opposite Dr Peng and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dr Peng 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.| Dr Peng vs. Weihai Honglin Electronic | Dr Peng vs. Shenzhen Clou Electronics | Dr Peng vs. Jiangxi Hengda Hi Tech | Dr Peng vs. Easyhome New Retail |
| 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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