Correlation Between China Satellite and PetroChina
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By analyzing existing cross correlation between China Satellite Communications and PetroChina Co Ltd, you can compare the effects of market volatilities on China Satellite 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 Satellite with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Satellite and PetroChina.
Diversification Opportunities for China Satellite and PetroChina
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and PetroChina is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding China Satellite Communications and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and China Satellite 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 Satellite Communications 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 Satellite i.e., China Satellite and PetroChina go up and down completely randomly.
Pair Corralation between China Satellite and PetroChina
Assuming the 90 days trading horizon China Satellite Communications is expected to under-perform the PetroChina. In addition to that, China Satellite is 1.57 times more volatile than PetroChina Co Ltd. It trades about -0.18 of its total potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.24 per unit of volatility. If you would invest 900.00 in PetroChina Co Ltd on October 31, 2024 and sell it today you would lose (67.00) from holding PetroChina Co Ltd or give up 7.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Satellite Communications vs. PetroChina Co Ltd
Performance |
| Timeline |
| China Satellite Comm |
| PetroChina |
China Satellite and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Satellite and PetroChina
The main advantage of trading using opposite China Satellite and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Satellite 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 Satellite vs. Qumei Furniture Group | China Satellite vs. Western Metal Materials | China Satellite vs. NBTM New Materials | China Satellite vs. Mengtian Home Group |
| PetroChina vs. Quectel Wireless Solutions | PetroChina vs. Orinko Advanced Plastics | PetroChina vs. Gansu Huangtai Wine marketing | PetroChina vs. Konfoong Materials International |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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