Correlation Between PetroChina and Beijing Mainstreets
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By analyzing existing cross correlation between PetroChina Co Ltd and Beijing Mainstreets Investment, you can compare the effects of market volatilities on PetroChina and Beijing Mainstreets 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 Beijing Mainstreets. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Beijing Mainstreets.
Diversification Opportunities for PetroChina and Beijing Mainstreets
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Beijing is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Beijing Mainstreets Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Mainstreets 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 Beijing Mainstreets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Mainstreets has no effect on the direction of PetroChina i.e., PetroChina and Beijing Mainstreets go up and down completely randomly.
Pair Corralation between PetroChina and Beijing Mainstreets
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.44 times more return on investment than Beijing Mainstreets. However, PetroChina Co Ltd is 2.26 times less risky than Beijing Mainstreets. It trades about 0.02 of its potential returns per unit of risk. Beijing Mainstreets Investment is currently generating about -0.02 per unit of risk. If you would invest 760.00 in PetroChina Co Ltd on August 31, 2024 and sell it today you would earn a total of 44.00 from holding PetroChina Co Ltd or generate 5.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Beijing Mainstreets Investment
Performance |
| Timeline |
| PetroChina |
| Beijing Mainstreets |
PetroChina and Beijing Mainstreets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Beijing Mainstreets
The main advantage of trading using opposite PetroChina and Beijing Mainstreets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Beijing Mainstreets 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 Beijing Mainstreets will offset losses from the drop in Beijing Mainstreets' long position.| PetroChina vs. Zhejiang Kingland Pipeline | PetroChina vs. Gansu Jiu Steel | PetroChina vs. Ming Yang Smart | PetroChina vs. Aba Chemicals Corp |
| Beijing Mainstreets vs. Kweichow Moutai Co | Beijing Mainstreets vs. Contemporary Amperex Technology | Beijing Mainstreets vs. G bits Network Technology | Beijing Mainstreets vs. BYD Co Ltd |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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