Correlation Between PetroChina and BlueFocus Communication
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By analyzing existing cross correlation between PetroChina Co Ltd and BlueFocus Communication Group, you can compare the effects of market volatilities on PetroChina and BlueFocus Communication 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 BlueFocus Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and BlueFocus Communication.
Diversification Opportunities for PetroChina and BlueFocus Communication
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between PetroChina and BlueFocus is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and BlueFocus Communication Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlueFocus Communication 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 BlueFocus Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlueFocus Communication has no effect on the direction of PetroChina i.e., PetroChina and BlueFocus Communication go up and down completely randomly.
Pair Corralation between PetroChina and BlueFocus Communication
Assuming the 90 days trading horizon PetroChina is expected to generate 4.24 times less return on investment than BlueFocus Communication. But when comparing it to its historical volatility, PetroChina Co Ltd is 5.88 times less risky than BlueFocus Communication. It trades about 0.22 of its potential returns per unit of risk. BlueFocus Communication Group is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 954.00 in BlueFocus Communication Group on September 13, 2024 and sell it today you would earn a total of 199.00 from holding BlueFocus Communication Group or generate 20.86% 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. BlueFocus Communication Group
Performance |
| Timeline |
| PetroChina |
| BlueFocus Communication |
PetroChina and BlueFocus Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and BlueFocus Communication
The main advantage of trading using opposite PetroChina and BlueFocus Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, BlueFocus Communication 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 BlueFocus Communication will offset losses from the drop in BlueFocus Communication's long position.| PetroChina vs. Ningxia Building Materials | PetroChina vs. Chongqing Sulian Plastic | PetroChina vs. Guangzhou Tinci Materials | PetroChina vs. Tianjin Pengling Rubber |
| BlueFocus Communication vs. BYD Co Ltd | BlueFocus Communication vs. China Mobile Limited | BlueFocus Communication vs. Agricultural Bank of | BlueFocus Communication vs. Industrial and Commercial |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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