Correlation Between PetroChina and Blue Sail
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By analyzing existing cross correlation between PetroChina Co Ltd and Blue Sail Medical, you can compare the effects of market volatilities on PetroChina and Blue Sail 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 Blue Sail. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Blue Sail.
Diversification Opportunities for PetroChina and Blue Sail
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Blue is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Blue Sail Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Sail Medical 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 Blue Sail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Sail Medical has no effect on the direction of PetroChina i.e., PetroChina and Blue Sail go up and down completely randomly.
Pair Corralation between PetroChina and Blue Sail
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Blue Sail. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 1.89 times less risky than Blue Sail. The stock trades about -0.18 of its potential returns per unit of risk. The Blue Sail Medical is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 547.00 in Blue Sail Medical on August 26, 2024 and sell it today you would lose (10.00) from holding Blue Sail Medical or give up 1.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Blue Sail Medical
Performance |
| Timeline |
| PetroChina |
| Blue Sail Medical |
PetroChina and Blue Sail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Blue Sail
The main advantage of trading using opposite PetroChina and Blue Sail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Blue Sail 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 Blue Sail will offset losses from the drop in Blue Sail's long position.| PetroChina vs. Zhejiang Kingland Pipeline | PetroChina vs. COL Digital Publishing | PetroChina vs. Suzhou Novoprotein Scientific | PetroChina vs. Xiangyang Automobile Bearing |
| Blue Sail vs. Bank of China | Blue Sail vs. Kweichow Moutai Co | Blue Sail vs. PetroChina Co Ltd | Blue Sail vs. Bank of Communications |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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