Correlation Between PetroChina and China Union
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By analyzing existing cross correlation between PetroChina Co Ltd and China Union Holdings, you can compare the effects of market volatilities on PetroChina and China Union 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 PetroChina with a short position of China Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and China Union.
Diversification Opportunities for PetroChina and China Union
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and China is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and China Union Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Union Holdings and PetroChina 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 PetroChina Co Ltd are associated (or correlated) with China Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Union Holdings has no effect on the direction of PetroChina i.e., PetroChina and China Union go up and down completely randomly.
Pair Corralation between PetroChina and China Union
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.9 times more return on investment than China Union. However, PetroChina Co Ltd is 1.11 times less risky than China Union. It trades about 0.07 of its potential returns per unit of risk. China Union Holdings is currently generating about 0.02 per unit of risk. If you would invest 484.00 in PetroChina Co Ltd on September 26, 2024 and sell it today you would earn a total of 394.00 from holding PetroChina Co Ltd or generate 81.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
PetroChina Co Ltd vs. China Union Holdings
Performance |
| Timeline |
| PetroChina |
| China Union Holdings |
PetroChina and China Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and China Union
The main advantage of trading using opposite PetroChina and China Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, China Union 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 China Union will offset losses from the drop in China Union's long position.| PetroChina vs. Zhejiang Kingland Pipeline | PetroChina vs. Jiangsu Zhongtian Technology | PetroChina vs. Shaanxi Beiyuan Chemical | PetroChina vs. Sinomine Resource Exploration |
| China Union vs. PetroChina Co Ltd | China Union vs. China Mobile Limited | China Union vs. CNOOC Limited | China Union vs. Ping An Insurance |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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