Correlation Between PetroChina and De Rucci
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By analyzing existing cross correlation between PetroChina Co Ltd and De Rucci Healthy, you can compare the effects of market volatilities on PetroChina and De Rucci 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 De Rucci. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and De Rucci.
Diversification Opportunities for PetroChina and De Rucci
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and 001323 is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and De Rucci Healthy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on De Rucci Healthy 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 De Rucci. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of De Rucci Healthy has no effect on the direction of PetroChina i.e., PetroChina and De Rucci go up and down completely randomly.
Pair Corralation between PetroChina and De Rucci
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the De Rucci. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 1.98 times less risky than De Rucci. The stock trades about -0.17 of its potential returns per unit of risk. The De Rucci Healthy is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 3,790 in De Rucci Healthy on August 29, 2024 and sell it today you would earn a total of 14.00 from holding De Rucci Healthy or generate 0.37% 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. De Rucci Healthy
Performance |
| Timeline |
| PetroChina |
| De Rucci Healthy |
PetroChina and De Rucci Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and De Rucci
The main advantage of trading using opposite PetroChina and De Rucci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, De Rucci 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 De Rucci will offset losses from the drop in De Rucci's long position.| PetroChina vs. Guilin Seamild Foods | PetroChina vs. Great Sun Foods Co | PetroChina vs. Jiahe Foods Industry | PetroChina vs. Lander Sports Development |
| De Rucci vs. Agricultural Bank of | De Rucci vs. Industrial and Commercial | De Rucci vs. Bank of China | De Rucci vs. China Construction Bank |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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