Correlation Between PetroChina and Gan Yuan
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By analyzing existing cross correlation between PetroChina Co Ltd and Gan Yuan Foods, you can compare the effects of market volatilities on PetroChina and Gan Yuan 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 Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Gan Yuan.
Diversification Opportunities for PetroChina and Gan Yuan
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Gan is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods 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 Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of PetroChina i.e., PetroChina and Gan Yuan go up and down completely randomly.
Pair Corralation between PetroChina and Gan Yuan
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.82 times more return on investment than Gan Yuan. However, PetroChina Co Ltd is 1.21 times less risky than Gan Yuan. It trades about 0.03 of its potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.01 per unit of risk. If you would invest 713.00 in PetroChina Co Ltd on August 25, 2024 and sell it today you would earn a total of 88.00 from holding PetroChina Co Ltd or generate 12.34% 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. Gan Yuan Foods
Performance |
| Timeline |
| PetroChina |
| Gan Yuan Foods |
PetroChina and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Gan Yuan
The main advantage of trading using opposite PetroChina and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan's long position.| PetroChina vs. Zhejiang Kingland Pipeline | PetroChina vs. COL Digital Publishing | PetroChina vs. Suzhou Novoprotein Scientific | PetroChina vs. Xiangyang Automobile Bearing |
| Gan Yuan vs. Lianhe Chemical Technology | Gan Yuan vs. JCHX Mining Management | Gan Yuan vs. Shanghai CEO Environmental | Gan Yuan vs. Hubei Dinglong Chemical |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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