Correlation Between Gem Year and PetroChina
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By analyzing existing cross correlation between Gem Year Industrial Co and PetroChina Co Ltd, you can compare the effects of market volatilities on Gem Year 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 Gem Year with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and PetroChina.
Diversification Opportunities for Gem Year and PetroChina
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gem and PetroChina is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial Co and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Gem Year 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 Gem Year Industrial 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 Gem Year i.e., Gem Year and PetroChina go up and down completely randomly.
Pair Corralation between Gem Year and PetroChina
Assuming the 90 days trading horizon Gem Year Industrial Co is expected to generate 2.79 times more return on investment than PetroChina. However, Gem Year is 2.79 times more volatile than PetroChina Co Ltd. It trades about 0.03 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.03 per unit of risk. If you would invest 440.00 in Gem Year Industrial Co on September 1, 2024 and sell it today you would earn a total of 4.00 from holding Gem Year Industrial Co or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gem Year Industrial Co vs. PetroChina Co Ltd
Performance |
| Timeline |
| Gem Year Industrial |
| PetroChina |
Gem Year and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gem Year and PetroChina
The main advantage of trading using opposite Gem Year and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year 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.| Gem Year vs. PetroChina Co Ltd | Gem Year vs. China Mobile Limited | Gem Year vs. CNOOC Limited | Gem Year vs. Ping An Insurance |
| PetroChina vs. Dongjiang Environmental Co | PetroChina vs. Tonghua Grape Wine | PetroChina vs. Dezhan HealthCare Co | PetroChina vs. Guangdong Liantai Environmental |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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