Correlation Between PetroChina and Bosera CMSK
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By analyzing existing cross correlation between PetroChina Co Ltd and Bosera CMSK Industrial, you can compare the effects of market volatilities on PetroChina and Bosera CMSK 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 Bosera CMSK. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Bosera CMSK.
Diversification Opportunities for PetroChina and Bosera CMSK
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PetroChina and Bosera is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Bosera CMSK Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bosera CMSK Industrial 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 Bosera CMSK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bosera CMSK Industrial has no effect on the direction of PetroChina i.e., PetroChina and Bosera CMSK go up and down completely randomly.
Pair Corralation between PetroChina and Bosera CMSK
Assuming the 90 days trading horizon PetroChina is expected to generate 1.78 times less return on investment than Bosera CMSK. In addition to that, PetroChina is 1.23 times more volatile than Bosera CMSK Industrial. It trades about 0.15 of its total potential returns per unit of risk. Bosera CMSK Industrial is currently generating about 0.34 per unit of volatility. If you would invest 199.00 in Bosera CMSK Industrial on October 17, 2024 and sell it today you would earn a total of 18.00 from holding Bosera CMSK Industrial or generate 9.05% 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. Bosera CMSK Industrial
Performance |
| Timeline |
| PetroChina |
| Bosera CMSK Industrial |
PetroChina and Bosera CMSK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Bosera CMSK
The main advantage of trading using opposite PetroChina and Bosera CMSK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Bosera CMSK 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 Bosera CMSK will offset losses from the drop in Bosera CMSK's long position.| PetroChina vs. Ningbo Fujia Industrial | PetroChina vs. Guangzhou Haozhi Industrial | PetroChina vs. Guangdong Jingyi Metal | PetroChina vs. Iat Automobile Technology |
| Bosera CMSK vs. PetroChina Co Ltd | Bosera CMSK vs. China Mobile Limited | Bosera CMSK vs. CNOOC Limited | Bosera CMSK vs. Ping An Insurance |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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