Correlation Between China Aluminum and PetroChina
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By analyzing existing cross correlation between China Aluminum International and PetroChina Co Ltd, you can compare the effects of market volatilities on China Aluminum 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 Aluminum with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Aluminum and PetroChina.
Diversification Opportunities for China Aluminum and PetroChina
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and PetroChina is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding China Aluminum International and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and China Aluminum 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 Aluminum International 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 Aluminum i.e., China Aluminum and PetroChina go up and down completely randomly.
Pair Corralation between China Aluminum and PetroChina
Assuming the 90 days trading horizon China Aluminum International is expected to under-perform the PetroChina. In addition to that, China Aluminum is 1.6 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 -0.03 per unit of volatility. If you would invest 810.00 in PetroChina Co Ltd on September 1, 2024 and sell it today you would lose (6.00) from holding PetroChina Co Ltd or give up 0.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Aluminum International vs. PetroChina Co Ltd
Performance |
| Timeline |
| China Aluminum Inter |
| PetroChina |
China Aluminum and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Aluminum and PetroChina
The main advantage of trading using opposite China Aluminum and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Aluminum 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 Aluminum vs. Do Fluoride Chemicals Co | China Aluminum vs. Duzhe Publishing Media | China Aluminum vs. Harbin Hatou Investment | China Aluminum vs. Southern PublishingMedia Co |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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