Correlation Between PetroChina and North Copper
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By analyzing existing cross correlation between PetroChina Co Ltd and North Copper Shanxi, you can compare the effects of market volatilities on PetroChina and North Copper 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 North Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and North Copper.
Diversification Opportunities for PetroChina and North Copper
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and North is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and North Copper Shanxi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Copper Shanxi 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 North Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Copper Shanxi has no effect on the direction of PetroChina i.e., PetroChina and North Copper go up and down completely randomly.
Pair Corralation between PetroChina and North Copper
Assuming the 90 days trading horizon PetroChina is expected to generate 1.82 times less return on investment than North Copper. But when comparing it to its historical volatility, PetroChina Co Ltd is 1.91 times less risky than North Copper. It trades about 0.06 of its potential returns per unit of risk. North Copper Shanxi is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 857.00 in North Copper Shanxi on October 30, 2024 and sell it today you would earn a total of 49.00 from holding North Copper Shanxi or generate 5.72% 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. North Copper Shanxi
Performance |
| Timeline |
| PetroChina |
| North Copper Shanxi |
PetroChina and North Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and North Copper
The main advantage of trading using opposite PetroChina and North Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, North Copper 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 North Copper will offset losses from the drop in North Copper's long position.| PetroChina vs. Southchip Semiconductor Technology | PetroChina vs. Lontium Semiconductor Corp | PetroChina vs. Hubei Tech Semiconductors | PetroChina vs. Semiconductor Manufacturing Intl |
| North Copper vs. Citic Guoan Wine | North Copper vs. Shanghai Yaoji Playing | North Copper vs. Nuode Investment Co | North Copper vs. Hunan Investment Group |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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