Correlation Between PetroChina and Glodon Software
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By analyzing existing cross correlation between PetroChina Co Ltd and Glodon Software Co, you can compare the effects of market volatilities on PetroChina and Glodon Software 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 Glodon Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Glodon Software.
Diversification Opportunities for PetroChina and Glodon Software
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PetroChina and Glodon is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Glodon Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glodon Software 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 Glodon Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glodon Software has no effect on the direction of PetroChina i.e., PetroChina and Glodon Software go up and down completely randomly.
Pair Corralation between PetroChina and Glodon Software
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Glodon Software. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 1.72 times less risky than Glodon Software. The stock trades about -0.26 of its potential returns per unit of risk. The Glodon Software Co is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 1,222 in Glodon Software Co on October 28, 2024 and sell it today you would lose (70.00) from holding Glodon Software Co or give up 5.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Glodon Software Co
Performance |
| Timeline |
| PetroChina |
| Glodon Software |
PetroChina and Glodon Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Glodon Software
The main advantage of trading using opposite PetroChina and Glodon Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Glodon Software 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 Glodon Software will offset losses from the drop in Glodon Software's long position.| PetroChina vs. Lontium Semiconductor Corp | PetroChina vs. Hubei Tech Semiconductors | PetroChina vs. CICC Fund Management | PetroChina vs. Chengdu Spaceon Electronics |
| Glodon Software vs. Guangzhou Restaurants Group | Glodon Software vs. Ningxia Younglight Chemicals | Glodon Software vs. Guizhou Chanhen Chemical | Glodon Software vs. Sihui Fuji Electronics |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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