Correlation Between PetroChina and Inner Mongolia
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By analyzing existing cross correlation between PetroChina Co Ltd and Inner Mongolia Furui, you can compare the effects of market volatilities on PetroChina and Inner Mongolia 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 Inner Mongolia. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Inner Mongolia.
Diversification Opportunities for PetroChina and Inner Mongolia
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PetroChina and Inner is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Inner Mongolia Furui in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inner Mongolia Furui 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 Inner Mongolia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inner Mongolia Furui has no effect on the direction of PetroChina i.e., PetroChina and Inner Mongolia go up and down completely randomly.
Pair Corralation between PetroChina and Inner Mongolia
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.55 times more return on investment than Inner Mongolia. However, PetroChina Co Ltd is 1.81 times less risky than Inner Mongolia. It trades about -0.07 of its potential returns per unit of risk. Inner Mongolia Furui is currently generating about -0.06 per unit of risk. If you would invest 999.00 in PetroChina Co Ltd on September 2, 2024 and sell it today you would lose (195.00) from holding PetroChina Co Ltd or give up 19.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Inner Mongolia Furui
Performance |
| Timeline |
| PetroChina |
| Inner Mongolia Furui |
PetroChina and Inner Mongolia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Inner Mongolia
The main advantage of trading using opposite PetroChina and Inner Mongolia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Inner Mongolia 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 Inner Mongolia will offset losses from the drop in Inner Mongolia's long position.| PetroChina vs. Zotye Automobile Co | PetroChina vs. Zhejiang Qianjiang Motorcycle | PetroChina vs. Miracll Chemicals Co | PetroChina vs. Bus Online Co |
| Inner Mongolia vs. Peoples Insurance of | Inner Mongolia vs. Nuode Investment Co | Inner Mongolia vs. Heren Health Co | Inner Mongolia vs. Zhongshan Public Utilities |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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