Correlation Between PetroChina and Foryou Corp
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By analyzing existing cross correlation between PetroChina Co Ltd and Foryou Corp, you can compare the effects of market volatilities on PetroChina and Foryou Corp 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 Foryou Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Foryou Corp.
Diversification Opportunities for PetroChina and Foryou Corp
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Foryou is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Foryou Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foryou 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 Foryou Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foryou Corp has no effect on the direction of PetroChina i.e., PetroChina and Foryou Corp go up and down completely randomly.
Pair Corralation between PetroChina and Foryou Corp
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Foryou Corp. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 4.14 times less risky than Foryou Corp. The stock trades about -0.48 of its potential returns per unit of risk. The Foryou Corp is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 2,965 in Foryou Corp on November 28, 2024 and sell it today you would earn a total of 603.00 from holding Foryou Corp or generate 20.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Foryou Corp
Performance |
| Timeline |
| PetroChina |
| Foryou Corp |
PetroChina and Foryou Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Foryou Corp
The main advantage of trading using opposite PetroChina and Foryou Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Foryou Corp 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 Foryou Corp will offset losses from the drop in Foryou Corp's long position.| PetroChina vs. Guolin Environmental Tech | PetroChina vs. Fujian Longzhou Transportation | PetroChina vs. Hang Xiao Steel | PetroChina vs. Qiaoyin Environmental Tech |
| Foryou Corp vs. New China Life | Foryou Corp vs. Ming Yang Smart | Foryou Corp vs. 159681 | Foryou Corp vs. 159005 |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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