Correlation Between PetroChina and Taiji Computer
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By analyzing existing cross correlation between PetroChina Co Ltd and Taiji Computer Corp, you can compare the effects of market volatilities on PetroChina and Taiji Computer 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 Taiji Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Taiji Computer.
Diversification Opportunities for PetroChina and Taiji Computer
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PetroChina and Taiji is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Taiji Computer Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taiji Computer Corp 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 Taiji Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taiji Computer Corp has no effect on the direction of PetroChina i.e., PetroChina and Taiji Computer go up and down completely randomly.
Pair Corralation between PetroChina and Taiji Computer
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.7 times more return on investment than Taiji Computer. However, PetroChina Co Ltd is 1.42 times less risky than Taiji Computer. It trades about 0.18 of its potential returns per unit of risk. Taiji Computer Corp is currently generating about -0.42 per unit of risk. If you would invest 828.00 in PetroChina Co Ltd on October 14, 2024 and sell it today you would earn a total of 47.00 from holding PetroChina Co Ltd or generate 5.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Taiji Computer Corp
Performance |
| Timeline |
| PetroChina |
| Taiji Computer Corp |
PetroChina and Taiji Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Taiji Computer
The main advantage of trading using opposite PetroChina and Taiji Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Taiji Computer 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 Taiji Computer will offset losses from the drop in Taiji Computer's long position.| PetroChina vs. Shannon Semiconductor Technology | PetroChina vs. Qingdao Haier Biomedical | PetroChina vs. Shanghai V Test Semiconductor | PetroChina vs. Zhonghong Pulin Medical |
| Taiji Computer vs. Maoming Petro Chemical Shihua | Taiji Computer vs. Jinling Hotel Corp | Taiji Computer vs. Wuxi Chemical Equipment | Taiji Computer vs. Xiangtan Electrochemical Scientific |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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