Correlation Between Xinjiang Baodi and PetroChina
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By analyzing existing cross correlation between Xinjiang Baodi Mining and PetroChina Co Ltd, you can compare the effects of market volatilities on Xinjiang Baodi 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 Xinjiang Baodi with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and PetroChina.
Diversification Opportunities for Xinjiang Baodi and PetroChina
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Xinjiang and PetroChina is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Xinjiang Baodi 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 Xinjiang Baodi Mining 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 Xinjiang Baodi i.e., Xinjiang Baodi and PetroChina go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and PetroChina
Assuming the 90 days trading horizon Xinjiang Baodi is expected to generate 2.15 times less return on investment than PetroChina. In addition to that, Xinjiang Baodi is 1.38 times more volatile than PetroChina Co Ltd. It trades about 0.02 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 Together |
| Strength | Insignificant |
| Accuracy | 93.72% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. PetroChina Co Ltd
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| PetroChina |
Xinjiang Baodi and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and PetroChina
The main advantage of trading using opposite Xinjiang Baodi and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi 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.| Xinjiang Baodi vs. Shannon Semiconductor Technology | Xinjiang Baodi vs. Southchip Semiconductor Technology | Xinjiang Baodi vs. Ingenic Semiconductor | Xinjiang Baodi vs. Shanghai Shibei Hi Tech |
| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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