Correlation Between PetroChina and Vanfund Urban
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By analyzing existing cross correlation between PetroChina Co Ltd and Vanfund Urban Investment, you can compare the effects of market volatilities on PetroChina and Vanfund Urban 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 Vanfund Urban. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Vanfund Urban.
Diversification Opportunities for PetroChina and Vanfund Urban
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Vanfund is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Vanfund Urban Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanfund Urban Investment 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 Vanfund Urban. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanfund Urban Investment has no effect on the direction of PetroChina i.e., PetroChina and Vanfund Urban go up and down completely randomly.
Pair Corralation between PetroChina and Vanfund Urban
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.5 times more return on investment than Vanfund Urban. However, PetroChina Co Ltd is 2.01 times less risky than Vanfund Urban. It trades about 0.03 of its potential returns per unit of risk. Vanfund Urban Investment is currently generating about 0.01 per unit of risk. If you would invest 709.00 in PetroChina Co Ltd on September 1, 2024 and sell it today you would earn a total of 95.00 from holding PetroChina Co Ltd or generate 13.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Vanfund Urban Investment
Performance |
| Timeline |
| PetroChina |
| Vanfund Urban Investment |
PetroChina and Vanfund Urban Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Vanfund Urban
The main advantage of trading using opposite PetroChina and Vanfund Urban positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Vanfund Urban 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 Vanfund Urban will offset losses from the drop in Vanfund Urban's long position.| PetroChina vs. Dongjiang Environmental Co | PetroChina vs. Tonghua Grape Wine | PetroChina vs. Dezhan HealthCare Co | PetroChina vs. Guangdong Liantai Environmental |
| Vanfund Urban vs. Cultural Investment Holdings | Vanfund Urban vs. Gome Telecom Equipment | Vanfund Urban vs. Bus Online Co | Vanfund Urban vs. Holitech Technology Co |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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