Correlation Between PetroChina and Xiandai Investment
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By analyzing existing cross correlation between PetroChina Co Ltd and Xiandai Investment Co, you can compare the effects of market volatilities on PetroChina and Xiandai Investment 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 Xiandai Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Xiandai Investment.
Diversification Opportunities for PetroChina and Xiandai Investment
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between PetroChina and Xiandai is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Xiandai Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiandai 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 Xiandai Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiandai Investment has no effect on the direction of PetroChina i.e., PetroChina and Xiandai Investment go up and down completely randomly.
Pair Corralation between PetroChina and Xiandai Investment
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Xiandai Investment. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 1.47 times less risky than Xiandai Investment. The stock trades about -0.01 of its potential returns per unit of risk. The Xiandai Investment Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 416.00 in Xiandai Investment Co on October 26, 2024 and sell it today you would earn a total of 2.00 from holding Xiandai Investment Co or generate 0.48% 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. Xiandai Investment Co
Performance |
| Timeline |
| PetroChina |
| Xiandai Investment |
PetroChina and Xiandai Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Xiandai Investment
The main advantage of trading using opposite PetroChina and Xiandai Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Xiandai Investment 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 Xiandai Investment will offset losses from the drop in Xiandai Investment's long position.| PetroChina vs. Heilongjiang Transport Development | PetroChina vs. Unisplendour Corp | PetroChina vs. Strait Innovation Internet | PetroChina vs. Beijing Seeyon Internet |
| Xiandai Investment vs. PetroChina Co Ltd | Xiandai Investment vs. China Mobile Limited | Xiandai Investment vs. CNOOC Limited | Xiandai Investment vs. Ping An Insurance |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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