Correlation Between Huaibei Mining and PetroChina
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By analyzing existing cross correlation between Huaibei Mining Holdings and PetroChina Co Ltd, you can compare the effects of market volatilities on Huaibei Mining 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 Huaibei Mining with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaibei Mining and PetroChina.
Diversification Opportunities for Huaibei Mining and PetroChina
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Huaibei and PetroChina is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Huaibei Mining Holdings and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Huaibei Mining 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 Huaibei Mining Holdings 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 Huaibei Mining i.e., Huaibei Mining and PetroChina go up and down completely randomly.
Pair Corralation between Huaibei Mining and PetroChina
Assuming the 90 days trading horizon Huaibei Mining is expected to generate 4.48 times less return on investment than PetroChina. In addition to that, Huaibei Mining is 1.0 times more volatile than PetroChina Co Ltd. It trades about 0.01 of its total potential returns per unit of risk. PetroChina Co Ltd is currently generating about 0.07 per unit of volatility. If you would invest 506.00 in PetroChina Co Ltd on October 14, 2024 and sell it today you would earn a total of 369.00 from holding PetroChina Co Ltd or generate 72.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaibei Mining Holdings vs. PetroChina Co Ltd
Performance |
| Timeline |
| Huaibei Mining Holdings |
| PetroChina |
Huaibei Mining and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaibei Mining and PetroChina
The main advantage of trading using opposite Huaibei Mining and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaibei Mining 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.| Huaibei Mining vs. Heilongjiang Transport Development | Huaibei Mining vs. State Grid InformationCommunication | Huaibei Mining vs. Sportsoul Co Ltd | Huaibei Mining vs. Porton Fine Chemicals |
| PetroChina vs. Shannon Semiconductor Technology | PetroChina vs. Qingdao Haier Biomedical | PetroChina vs. Shanghai V Test Semiconductor | PetroChina vs. Zhonghong Pulin Medical |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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