Correlation Between PetroChina and Holitech Technology
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By analyzing existing cross correlation between PetroChina Co Ltd and Holitech Technology Co, you can compare the effects of market volatilities on PetroChina and Holitech Technology 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 Holitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Holitech Technology.
Diversification Opportunities for PetroChina and Holitech Technology
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Holitech is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Holitech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holitech Technology 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 Holitech Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Holitech Technology has no effect on the direction of PetroChina i.e., PetroChina and Holitech Technology go up and down completely randomly.
Pair Corralation between PetroChina and Holitech Technology
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.3 times more return on investment than Holitech Technology. However, PetroChina Co Ltd is 3.29 times less risky than Holitech Technology. It trades about 0.13 of its potential returns per unit of risk. Holitech Technology Co is currently generating about -0.07 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 | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Holitech Technology Co
Performance |
| Timeline |
| PetroChina |
| Holitech Technology |
PetroChina and Holitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Holitech Technology
The main advantage of trading using opposite PetroChina and Holitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Holitech Technology 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 Holitech Technology will offset losses from the drop in Holitech Technology's long position.| PetroChina vs. Digital China Information | PetroChina vs. DO Home Collection | PetroChina vs. Tongding Interconnection Information | PetroChina vs. Guangzhou Dongfang Hotel |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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