Correlation Between PetroChina and Mingchen Health
Specify exactly 2 symbols:
By analyzing existing cross correlation between PetroChina Co Ltd and Mingchen Health Co, you can compare the effects of market volatilities on PetroChina and Mingchen Health 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 Mingchen Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Mingchen Health.
Diversification Opportunities for PetroChina and Mingchen Health
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Mingchen is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Mingchen Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mingchen Health 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 Mingchen Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mingchen Health has no effect on the direction of PetroChina i.e., PetroChina and Mingchen Health go up and down completely randomly.
Pair Corralation between PetroChina and Mingchen Health
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Mingchen Health. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 2.73 times less risky than Mingchen Health. The stock trades about -0.03 of its potential returns per unit of risk. The Mingchen Health Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,488 in Mingchen Health Co on September 1, 2024 and sell it today you would earn a total of 55.00 from holding Mingchen Health Co or generate 3.7% 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. Mingchen Health Co
Performance |
| Timeline |
| PetroChina |
| Mingchen Health |
PetroChina and Mingchen Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Mingchen Health
The main advantage of trading using opposite PetroChina and Mingchen Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Mingchen Health 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 Mingchen Health will offset losses from the drop in Mingchen Health's long position.| PetroChina vs. Dongjiang Environmental Co | PetroChina vs. Tonghua Grape Wine | PetroChina vs. Dezhan HealthCare Co | PetroChina vs. Guangdong Liantai Environmental |
| Mingchen Health vs. Industrial and Commercial | Mingchen Health vs. Kweichow Moutai Co | Mingchen Health vs. Agricultural Bank of | Mingchen Health vs. China Mobile Limited |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |