Correlation Between Heilongjiang Transport and PetroChina
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By analyzing existing cross correlation between Heilongjiang Transport Development and PetroChina Co Ltd, you can compare the effects of market volatilities on Heilongjiang Transport 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 Heilongjiang Transport with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heilongjiang Transport and PetroChina.
Diversification Opportunities for Heilongjiang Transport and PetroChina
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Heilongjiang and PetroChina is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Heilongjiang Transport Develop and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Heilongjiang Transport 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 Heilongjiang Transport Development 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 Heilongjiang Transport i.e., Heilongjiang Transport and PetroChina go up and down completely randomly.
Pair Corralation between Heilongjiang Transport and PetroChina
Assuming the 90 days trading horizon Heilongjiang Transport Development is expected to generate 0.87 times more return on investment than PetroChina. However, Heilongjiang Transport Development is 1.15 times less risky than PetroChina. It trades about 0.05 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.25 per unit of risk. If you would invest 337.00 in Heilongjiang Transport Development on November 5, 2024 and sell it today you would earn a total of 3.00 from holding Heilongjiang Transport Development or generate 0.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heilongjiang Transport Develop vs. PetroChina Co Ltd
Performance |
| Timeline |
| Heilongjiang Transport |
| PetroChina |
Heilongjiang Transport and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heilongjiang Transport and PetroChina
The main advantage of trading using opposite Heilongjiang Transport and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heilongjiang Transport 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.| Heilongjiang Transport vs. AUPU Home Style | Heilongjiang Transport vs. Ningbo Homelink Eco iTech | Heilongjiang Transport vs. Citic Guoan Wine | Heilongjiang Transport vs. Hunan Mendale Hometextile |
| PetroChina vs. Anhui Deli Household | PetroChina vs. Liaoning Chengda Biotechnology | PetroChina vs. Beijing Baolande Software | PetroChina vs. Anhui Huaheng Biotechnology |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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