Correlation Between PetroChina and Yunnan Xiyi
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By analyzing existing cross correlation between PetroChina Co Ltd and Yunnan Xiyi Industrial, you can compare the effects of market volatilities on PetroChina and Yunnan Xiyi 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 Xiyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Yunnan Xiyi.
Diversification Opportunities for PetroChina and Yunnan Xiyi
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Yunnan is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Yunnan Xiyi Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Xiyi Industrial 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 Xiyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Xiyi Industrial has no effect on the direction of PetroChina i.e., PetroChina and Yunnan Xiyi go up and down completely randomly.
Pair Corralation between PetroChina and Yunnan Xiyi
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Yunnan Xiyi. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 1.36 times less risky than Yunnan Xiyi. The stock trades about -0.08 of its potential returns per unit of risk. The Yunnan Xiyi Industrial is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 984.00 in Yunnan Xiyi Industrial on September 1, 2024 and sell it today you would earn a total of 155.00 from holding Yunnan Xiyi Industrial or generate 15.75% 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. Yunnan Xiyi Industrial
Performance |
| Timeline |
| PetroChina |
| Yunnan Xiyi Industrial |
PetroChina and Yunnan Xiyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Yunnan Xiyi
The main advantage of trading using opposite PetroChina and Yunnan Xiyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Yunnan Xiyi 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 Xiyi will offset losses from the drop in Yunnan Xiyi's long position.| PetroChina vs. Dongjiang Environmental Co | PetroChina vs. Tonghua Grape Wine | PetroChina vs. Dezhan HealthCare Co | PetroChina vs. Guangdong Liantai Environmental |
| Yunnan Xiyi vs. Jiangsu Broadcasting Cable | Yunnan Xiyi vs. Hainan Haiqi Transportation | Yunnan Xiyi vs. Southchip Semiconductor Technology | Yunnan Xiyi vs. Sichuan Fulin Transportation |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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