Correlation Between PetroChina and Guangzhou Ruoyuchen
Specify exactly 2 symbols:
By analyzing existing cross correlation between PetroChina Co Ltd and Guangzhou Ruoyuchen Information, you can compare the effects of market volatilities on PetroChina and Guangzhou Ruoyuchen 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 Guangzhou Ruoyuchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Guangzhou Ruoyuchen.
Diversification Opportunities for PetroChina and Guangzhou Ruoyuchen
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PetroChina and Guangzhou is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Guangzhou Ruoyuchen Informatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Ruoyuchen 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 Guangzhou Ruoyuchen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Ruoyuchen has no effect on the direction of PetroChina i.e., PetroChina and Guangzhou Ruoyuchen go up and down completely randomly.
Pair Corralation between PetroChina and Guangzhou Ruoyuchen
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Guangzhou Ruoyuchen. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 2.45 times less risky than Guangzhou Ruoyuchen. The stock trades about -0.25 of its potential returns per unit of risk. The Guangzhou Ruoyuchen Information is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,592 in Guangzhou Ruoyuchen Information on November 5, 2024 and sell it today you would earn a total of 130.00 from holding Guangzhou Ruoyuchen Information or generate 5.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Guangzhou Ruoyuchen Informatio
Performance |
| Timeline |
| PetroChina |
| Guangzhou Ruoyuchen |
PetroChina and Guangzhou Ruoyuchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Guangzhou Ruoyuchen
The main advantage of trading using opposite PetroChina and Guangzhou Ruoyuchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Guangzhou Ruoyuchen 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 Guangzhou Ruoyuchen will offset losses from the drop in Guangzhou Ruoyuchen's long position.| PetroChina vs. Anhui Deli Household | PetroChina vs. Liaoning Chengda Biotechnology | PetroChina vs. Beijing Baolande Software | PetroChina vs. Anhui Huaheng Biotechnology |
| Guangzhou Ruoyuchen vs. AVIC Fund Management | Guangzhou Ruoyuchen vs. Chengdu Spaceon Electronics | Guangzhou Ruoyuchen vs. Anhui Jinhe Industrial | Guangzhou Ruoyuchen vs. Shanghai CEO Environmental |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |