Correlation Between PetroChina and East Money
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By analyzing existing cross correlation between PetroChina Co Ltd and East Money Information, you can compare the effects of market volatilities on PetroChina and East Money 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 East Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and East Money.
Diversification Opportunities for PetroChina and East Money
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and East is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and East Money Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on East Money Information 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 East Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of East Money Information has no effect on the direction of PetroChina i.e., PetroChina and East Money go up and down completely randomly.
Pair Corralation between PetroChina and East Money
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the East Money. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 3.12 times less risky than East Money. The stock trades about -0.14 of its potential returns per unit of risk. The East Money Information is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,030 in East Money Information on August 29, 2024 and sell it today you would earn a total of 484.00 from holding East Money Information or generate 23.84% 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. East Money Information
Performance |
| Timeline |
| PetroChina |
| East Money Information |
PetroChina and East Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and East Money
The main advantage of trading using opposite PetroChina and East Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, East Money 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 East Money will offset losses from the drop in East Money's long position.| PetroChina vs. Guilin Seamild Foods | PetroChina vs. Great Sun Foods Co | PetroChina vs. Jiahe Foods Industry | PetroChina vs. Lander Sports Development |
| East Money vs. Kweichow Moutai Co | East Money vs. Contemporary Amperex Technology | East Money vs. G bits Network Technology | East Money vs. BYD Co Ltd |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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