Correlation Between PetroChina and Kuangda Technology
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By analyzing existing cross correlation between PetroChina Co Ltd and Kuangda Technology Group, you can compare the effects of market volatilities on PetroChina and Kuangda 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 Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Kuangda Technology.
Diversification Opportunities for PetroChina and Kuangda Technology
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Kuangda is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda 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 Kuangda Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuangda Technology has no effect on the direction of PetroChina i.e., PetroChina and Kuangda Technology go up and down completely randomly.
Pair Corralation between PetroChina and Kuangda Technology
Assuming the 90 days trading horizon PetroChina is expected to generate 2.24 times less return on investment than Kuangda Technology. But when comparing it to its historical volatility, PetroChina Co Ltd is 1.24 times less risky than Kuangda Technology. It trades about 0.02 of its potential returns per unit of risk. Kuangda Technology Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 444.00 in Kuangda Technology Group on September 4, 2024 and sell it today you would earn a total of 88.00 from holding Kuangda Technology Group or generate 19.82% 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. Kuangda Technology Group
Performance |
| Timeline |
| PetroChina |
| Kuangda Technology |
PetroChina and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Kuangda Technology
The main advantage of trading using opposite PetroChina and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Kuangda 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 Kuangda Technology will offset losses from the drop in Kuangda Technology's long position.| PetroChina vs. Sichuan Hebang Biotechnology | PetroChina vs. Guangdong Marubi Biotechnology | PetroChina vs. Shandong Sanyuan Biotechnology | PetroChina vs. Bloomage Biotechnology Corp |
| Kuangda Technology vs. Industrial and Commercial | Kuangda Technology vs. China Construction Bank | Kuangda Technology vs. Agricultural Bank of | Kuangda Technology vs. Bank of China |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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