Correlation Between PetroChina and LianChuang Electronic
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By analyzing existing cross correlation between PetroChina Co Ltd and LianChuang Electronic Technology, you can compare the effects of market volatilities on PetroChina and LianChuang Electronic 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 LianChuang Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and LianChuang Electronic.
Diversification Opportunities for PetroChina and LianChuang Electronic
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between PetroChina and LianChuang is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and LianChuang Electronic Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LianChuang Electronic 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 LianChuang Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LianChuang Electronic has no effect on the direction of PetroChina i.e., PetroChina and LianChuang Electronic go up and down completely randomly.
Pair Corralation between PetroChina and LianChuang Electronic
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.3 times more return on investment than LianChuang Electronic. However, PetroChina Co Ltd is 3.31 times less risky than LianChuang Electronic. It trades about 0.13 of its potential returns per unit of risk. LianChuang Electronic Technology is currently generating about -0.03 per unit of risk. If you would invest 809.00 in PetroChina Co Ltd on September 12, 2024 and sell it today you would earn a total of 27.00 from holding PetroChina Co Ltd or generate 3.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
PetroChina Co Ltd vs. LianChuang Electronic Technolo
Performance |
| Timeline |
| PetroChina |
| LianChuang Electronic |
PetroChina and LianChuang Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and LianChuang Electronic
The main advantage of trading using opposite PetroChina and LianChuang Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, LianChuang Electronic 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 LianChuang Electronic will offset losses from the drop in LianChuang Electronic's long position.| PetroChina vs. Digital China Information | PetroChina vs. DO Home Collection | PetroChina vs. Tongding Interconnection Information | PetroChina vs. Guangzhou Dongfang Hotel |
| LianChuang Electronic vs. Gansu Jiu Steel | LianChuang Electronic vs. Shandong Mining Machinery | LianChuang Electronic vs. Aba Chemicals Corp | LianChuang Electronic vs. BlueFocus Communication Group |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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