Correlation Between PetroChina and Guangzhou Seagull
Specify exactly 2 symbols:
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
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Guangzhou is -0.46. 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 2.18 times less risky than Guangzhou Seagull. The stock trades about -0.3 of its potential returns per unit of risk. The Guangzhou Seagull Kitchen is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 293.00 in Guangzhou Seagull Kitchen on October 29, 2024 and sell it today you would lose (10.00) from holding Guangzhou Seagull Kitchen or give up 3.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| 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. Shenzhen Topway Video | PetroChina vs. Ningbo Fangzheng Automobile | PetroChina vs. Zotye Automobile Co | PetroChina vs. Meinian Onehealth Healthcare |
| Guangzhou Seagull vs. China Greatwall Computer | Guangzhou Seagull vs. Kuang Chi Technologies | Guangzhou Seagull vs. Runjian Communication Co | Guangzhou Seagull vs. Fujian Boss Software |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |