Correlation Between Foxconn Industrial and PetroChina
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By analyzing existing cross correlation between Foxconn Industrial Internet and PetroChina Co Ltd, you can compare the effects of market volatilities on Foxconn Industrial 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 Foxconn Industrial with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foxconn Industrial and PetroChina.
Diversification Opportunities for Foxconn Industrial and PetroChina
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Foxconn and PetroChina is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Foxconn Industrial Internet and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Foxconn Industrial 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 Foxconn Industrial Internet 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 Foxconn Industrial i.e., Foxconn Industrial and PetroChina go up and down completely randomly.
Pair Corralation between Foxconn Industrial and PetroChina
Assuming the 90 days trading horizon Foxconn Industrial Internet is expected to generate 1.69 times more return on investment than PetroChina. However, Foxconn Industrial is 1.69 times more volatile than PetroChina Co Ltd. It trades about 0.09 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about 0.07 per unit of risk. If you would invest 1,884 in Foxconn Industrial Internet on September 12, 2024 and sell it today you would earn a total of 330.00 from holding Foxconn Industrial Internet or generate 17.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.28% |
| Values | Daily Returns |
Foxconn Industrial Internet vs. PetroChina Co Ltd
Performance |
| Timeline |
| Foxconn Industrial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| PetroChina |
Foxconn Industrial and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Foxconn Industrial and PetroChina
The main advantage of trading using opposite Foxconn Industrial and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foxconn Industrial 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.| Foxconn Industrial vs. Kingclean Electric Co | Foxconn Industrial vs. Zhengzhou Coal Mining | Foxconn Industrial vs. Oppein Home Group | Foxconn Industrial vs. Xizi Clean Energy |
| PetroChina vs. Ningxia Building Materials | PetroChina vs. Chongqing Sulian Plastic | PetroChina vs. Guangzhou Tinci Materials | PetroChina vs. Tianjin Pengling Rubber |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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