Correlation Between PetroChina and Easyhome New
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By analyzing existing cross correlation between PetroChina Co Ltd and Easyhome New Retail, you can compare the effects of market volatilities on PetroChina and Easyhome New 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 Easyhome New. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Easyhome New.
Diversification Opportunities for PetroChina and Easyhome New
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PetroChina and Easyhome is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Easyhome New Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Easyhome New Retail 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 Easyhome New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Easyhome New Retail has no effect on the direction of PetroChina i.e., PetroChina and Easyhome New go up and down completely randomly.
Pair Corralation between PetroChina and Easyhome New
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.4 times more return on investment than Easyhome New. However, PetroChina Co Ltd is 2.53 times less risky than Easyhome New. It trades about -0.21 of its potential returns per unit of risk. Easyhome New Retail is currently generating about -0.26 per unit of risk. If you would invest 885.00 in PetroChina Co Ltd on November 4, 2024 and sell it today you would lose (52.00) from holding PetroChina Co Ltd or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Easyhome New Retail
Performance |
| Timeline |
| PetroChina |
| Easyhome New Retail |
PetroChina and Easyhome New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Easyhome New
The main advantage of trading using opposite PetroChina and Easyhome New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Easyhome New 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 Easyhome New will offset losses from the drop in Easyhome New's long position.| PetroChina vs. Anhui Deli Household | PetroChina vs. Liaoning Chengda Biotechnology | PetroChina vs. Beijing Baolande Software | PetroChina vs. Anhui Huaheng Biotechnology |
| Easyhome New vs. Nantong Haixing Electronics | Easyhome New vs. Newcapec Electronics Co | Easyhome New vs. Dongnan Electronics Co | Easyhome New vs. Weihai Honglin Electronic |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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