Correlation Between PetroChina and Guangdong Qunxing
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By analyzing existing cross correlation between PetroChina Co Ltd and Guangdong Qunxing Toys, you can compare the effects of market volatilities on PetroChina and Guangdong Qunxing 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 Guangdong Qunxing. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Guangdong Qunxing.
Diversification Opportunities for PetroChina and Guangdong Qunxing
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PetroChina and Guangdong is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Guangdong Qunxing Toys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Qunxing Toys 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 Guangdong Qunxing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Qunxing Toys has no effect on the direction of PetroChina i.e., PetroChina and Guangdong Qunxing go up and down completely randomly.
Pair Corralation between PetroChina and Guangdong Qunxing
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.41 times more return on investment than Guangdong Qunxing. However, PetroChina Co Ltd is 2.45 times less risky than Guangdong Qunxing. It trades about -0.21 of its potential returns per unit of risk. Guangdong Qunxing Toys is currently generating about -0.22 per unit of risk. If you would invest 885.00 in PetroChina Co Ltd on November 4, 2024 and sell it today you would lose (52.00) from holding PetroChina Co Ltd or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Guangdong Qunxing Toys
Performance |
| Timeline |
| PetroChina |
| Guangdong Qunxing Toys |
PetroChina and Guangdong Qunxing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Guangdong Qunxing
The main advantage of trading using opposite PetroChina and Guangdong Qunxing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Guangdong Qunxing 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 Guangdong Qunxing will offset losses from the drop in Guangdong Qunxing's long position.| PetroChina vs. Anhui Deli Household | PetroChina vs. Liaoning Chengda Biotechnology | PetroChina vs. Beijing Baolande Software | PetroChina vs. Anhui Huaheng Biotechnology |
| Guangdong Qunxing vs. Shenzhen Zhongzhuang Construction | Guangdong Qunxing vs. Qijing Machinery | Guangdong Qunxing vs. Allied Machinery Co | Guangdong Qunxing vs. Tjk Machinery Tianjin |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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