Correlation Between PetroChina and Chengdu Xingrong
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By analyzing existing cross correlation between PetroChina Co Ltd and Chengdu Xingrong Investment, you can compare the effects of market volatilities on PetroChina and Chengdu Xingrong 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 Chengdu Xingrong. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Chengdu Xingrong.
Diversification Opportunities for PetroChina and Chengdu Xingrong
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PetroChina and Chengdu is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Chengdu Xingrong Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Xingrong Inv 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 Chengdu Xingrong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Xingrong Inv has no effect on the direction of PetroChina i.e., PetroChina and Chengdu Xingrong go up and down completely randomly.
Pair Corralation between PetroChina and Chengdu Xingrong
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 1.2 times more return on investment than Chengdu Xingrong. However, PetroChina is 1.2 times more volatile than Chengdu Xingrong Investment. It trades about 0.06 of its potential returns per unit of risk. Chengdu Xingrong Investment is currently generating about 0.06 per unit of risk. If you would invest 495.00 in PetroChina Co Ltd on September 3, 2024 and sell it today you would earn a total of 309.00 from holding PetroChina Co Ltd or generate 62.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Chengdu Xingrong Investment
Performance |
| Timeline |
| PetroChina |
| Chengdu Xingrong Inv |
PetroChina and Chengdu Xingrong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Chengdu Xingrong
The main advantage of trading using opposite PetroChina and Chengdu Xingrong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Chengdu Xingrong 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 Chengdu Xingrong will offset losses from the drop in Chengdu Xingrong's long position.| PetroChina vs. China Express Airlines | PetroChina vs. Xinhua Winshare Publishing | PetroChina vs. Jinhui Liquor Co | PetroChina vs. Beijing Kaiwen Education |
| Chengdu Xingrong vs. Shandong Polymer Biochemicals | Chengdu Xingrong vs. Time Publishing and | Chengdu Xingrong vs. Dymatic Chemicals | Chengdu Xingrong vs. Shandong Publishing Media |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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