Correlation Between PetroChina and Guangzhou Seagull
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By analyzing existing cross correlation between PetroChina Co Ltd and Guangzhou Seagull Kitchen, you can compare the effects of market volatilities on PetroChina and Guangzhou Seagull 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 Guangzhou Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Guangzhou Seagull.
Diversification Opportunities for PetroChina and Guangzhou Seagull
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between PetroChina and Guangzhou is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Guangzhou Seagull Kitchen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Seagull Kitchen 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 Guangzhou Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Seagull Kitchen has no effect on the direction of PetroChina i.e., PetroChina and Guangzhou Seagull go up and down completely randomly.
Pair Corralation between PetroChina and Guangzhou Seagull
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Guangzhou Seagull. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 2.32 times less risky than Guangzhou Seagull. The stock trades about -0.03 of its potential returns per unit of risk. The Guangzhou Seagull Kitchen is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 301.00 in Guangzhou Seagull Kitchen on September 1, 2024 and sell it today you would earn a total of 37.00 from holding Guangzhou Seagull Kitchen or generate 12.29% 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. Guangzhou Seagull Kitchen
Performance |
| Timeline |
| PetroChina |
| Guangzhou Seagull Kitchen |
PetroChina and Guangzhou Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Guangzhou Seagull
The main advantage of trading using opposite PetroChina and Guangzhou Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Guangzhou Seagull 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 Guangzhou Seagull will offset losses from the drop in Guangzhou Seagull's long position.| PetroChina vs. Dongjiang Environmental Co | PetroChina vs. Tonghua Grape Wine | PetroChina vs. Dezhan HealthCare Co | PetroChina vs. Guangdong Liantai Environmental |
| Guangzhou Seagull vs. Industrial and Commercial | Guangzhou Seagull vs. Kweichow Moutai Co | Guangzhou Seagull vs. Agricultural Bank of | Guangzhou Seagull vs. China Mobile Limited |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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