Correlation Between PetroChina and Tianjin Yiyi
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By analyzing existing cross correlation between PetroChina Co Ltd and Tianjin Yiyi Hygiene, you can compare the effects of market volatilities on PetroChina and Tianjin Yiyi 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 Tianjin Yiyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Tianjin Yiyi.
Diversification Opportunities for PetroChina and Tianjin Yiyi
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PetroChina and Tianjin is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Tianjin Yiyi Hygiene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Yiyi Hygiene 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 Tianjin Yiyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Yiyi Hygiene has no effect on the direction of PetroChina i.e., PetroChina and Tianjin Yiyi go up and down completely randomly.
Pair Corralation between PetroChina and Tianjin Yiyi
Assuming the 90 days trading horizon PetroChina is expected to generate 5.07 times less return on investment than Tianjin Yiyi. But when comparing it to its historical volatility, PetroChina Co Ltd is 2.34 times less risky than Tianjin Yiyi. It trades about 0.15 of its potential returns per unit of risk. Tianjin Yiyi Hygiene is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 1,665 in Tianjin Yiyi Hygiene on October 20, 2024 and sell it today you would earn a total of 450.00 from holding Tianjin Yiyi Hygiene or generate 27.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Tianjin Yiyi Hygiene
Performance |
| Timeline |
| PetroChina |
| Tianjin Yiyi Hygiene |
PetroChina and Tianjin Yiyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Tianjin Yiyi
The main advantage of trading using opposite PetroChina and Tianjin Yiyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Tianjin Yiyi 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 Tianjin Yiyi will offset losses from the drop in Tianjin Yiyi's long position.| PetroChina vs. 360 Security Technology | PetroChina vs. Vontron Technology Co | PetroChina vs. Meinian Onehealth Healthcare | PetroChina vs. Jiugui Liquor Co |
| Tianjin Yiyi vs. Rising Nonferrous Metals | Tianjin Yiyi vs. Easyhome New Retail | Tianjin Yiyi vs. Hengli Industrial Development | Tianjin Yiyi vs. Zhejiang Publishing Media |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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