Correlation Between PetroChina and Qingdao Foods
Specify exactly 2 symbols:
By analyzing existing cross correlation between PetroChina Co Ltd and Qingdao Foods Co, you can compare the effects of market volatilities on PetroChina and Qingdao Foods 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 Qingdao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Qingdao Foods.
Diversification Opportunities for PetroChina and Qingdao Foods
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Qingdao is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Qingdao Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Foods 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 Qingdao Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Foods has no effect on the direction of PetroChina i.e., PetroChina and Qingdao Foods go up and down completely randomly.
Pair Corralation between PetroChina and Qingdao Foods
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Qingdao Foods. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 3.86 times less risky than Qingdao Foods. The stock trades about -0.17 of its potential returns per unit of risk. The Qingdao Foods Co is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,351 in Qingdao Foods Co on September 2, 2024 and sell it today you would earn a total of 127.00 from holding Qingdao Foods Co or generate 9.4% 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. Qingdao Foods Co
Performance |
| Timeline |
| PetroChina |
| Qingdao Foods |
PetroChina and Qingdao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Qingdao Foods
The main advantage of trading using opposite PetroChina and Qingdao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Qingdao Foods 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 Qingdao Foods will offset losses from the drop in Qingdao Foods' long position.| PetroChina vs. Zotye Automobile Co | PetroChina vs. Zhejiang Qianjiang Motorcycle | PetroChina vs. Miracll Chemicals Co | PetroChina vs. Bus Online Co |
| Qingdao Foods vs. Fujian Nanwang Environment | Qingdao Foods vs. Wuhan Yangtze Communication | Qingdao Foods vs. Sunwave Communications Co | Qingdao Foods vs. Tongyu Communication |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |