Correlation Between PetroChina and Beijing New
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By analyzing existing cross correlation between PetroChina Co Ltd and Beijing New Building, you can compare the effects of market volatilities on PetroChina and Beijing 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 Beijing New. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Beijing New.
Diversification Opportunities for PetroChina and Beijing New
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PetroChina and Beijing is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Beijing New Building in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing New Building 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 New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing New Building has no effect on the direction of PetroChina i.e., PetroChina and Beijing New go up and down completely randomly.
Pair Corralation between PetroChina and Beijing New
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.72 times more return on investment than Beijing New. However, PetroChina Co Ltd is 1.39 times less risky than Beijing New. It trades about -0.09 of its potential returns per unit of risk. Beijing New Building is currently generating about -0.25 per unit of risk. If you would invest 820.00 in PetroChina Co Ltd on August 30, 2024 and sell it today you would lose (17.00) from holding PetroChina Co Ltd or give up 2.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Beijing New Building
Performance |
| Timeline |
| PetroChina |
| Beijing New Building |
PetroChina and Beijing New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Beijing New
The main advantage of trading using opposite PetroChina and Beijing New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Beijing 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 Beijing New will offset losses from the drop in Beijing New's long position.| PetroChina vs. Guilin Seamild Foods | PetroChina vs. Great Sun Foods Co | PetroChina vs. Jiahe Foods Industry | PetroChina vs. Lander Sports Development |
| Beijing New vs. PetroChina Co Ltd | Beijing New vs. China State Construction | Beijing New vs. China Mobile Limited | Beijing New vs. Industrial and Commercial |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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