Correlation Between PetroChina and Yunnan Yuntou
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By analyzing existing cross correlation between PetroChina Co Ltd and Yunnan Yuntou Ecology, you can compare the effects of market volatilities on PetroChina and Yunnan Yuntou 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 Yunnan Yuntou. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Yunnan Yuntou.
Diversification Opportunities for PetroChina and Yunnan Yuntou
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PetroChina and Yunnan is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Yunnan Yuntou Ecology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Yuntou Ecology 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 Yunnan Yuntou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Yuntou Ecology has no effect on the direction of PetroChina i.e., PetroChina and Yunnan Yuntou go up and down completely randomly.
Pair Corralation between PetroChina and Yunnan Yuntou
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.97 times more return on investment than Yunnan Yuntou. However, PetroChina Co Ltd is 1.03 times less risky than Yunnan Yuntou. It trades about 0.07 of its potential returns per unit of risk. Yunnan Yuntou Ecology is currently generating about -0.02 per unit of risk. If you would invest 484.00 in PetroChina Co Ltd on September 14, 2024 and sell it today you would earn a total of 361.00 from holding PetroChina Co Ltd or generate 74.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Yunnan Yuntou Ecology
Performance |
| Timeline |
| PetroChina |
| Yunnan Yuntou Ecology |
PetroChina and Yunnan Yuntou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Yunnan Yuntou
The main advantage of trading using opposite PetroChina and Yunnan Yuntou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Yunnan Yuntou 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 Yunnan Yuntou will offset losses from the drop in Yunnan Yuntou's long position.| PetroChina vs. Sportsoul Co Ltd | PetroChina vs. Dook Media Group | PetroChina vs. Focus Media Information | PetroChina vs. Wasu Media Holding |
| Yunnan Yuntou vs. Agricultural Bank of | Yunnan Yuntou vs. Industrial and Commercial | Yunnan Yuntou vs. Bank of China | Yunnan Yuntou vs. PetroChina Co Ltd |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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