Correlation Between PetroChina and Wonders Information
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By analyzing existing cross correlation between PetroChina Co Ltd and Wonders Information, you can compare the effects of market volatilities on PetroChina and Wonders Information 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 Wonders Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Wonders Information.
Diversification Opportunities for PetroChina and Wonders Information
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between PetroChina and Wonders is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Wonders Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wonders 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 Wonders Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wonders Information has no effect on the direction of PetroChina i.e., PetroChina and Wonders Information go up and down completely randomly.
Pair Corralation between PetroChina and Wonders Information
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.51 times more return on investment than Wonders Information. However, PetroChina Co Ltd is 1.98 times less risky than Wonders Information. It trades about 0.06 of its potential returns per unit of risk. Wonders Information is currently generating about 0.02 per unit of risk. If you would invest 495.00 in PetroChina Co Ltd on September 2, 2024 and sell it today you would earn a total of 309.00 from holding PetroChina Co Ltd or generate 62.42% 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. Wonders Information
Performance |
| Timeline |
| PetroChina |
| Wonders Information |
PetroChina and Wonders Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Wonders Information
The main advantage of trading using opposite PetroChina and Wonders Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Wonders Information 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 Wonders Information will offset losses from the drop in Wonders Information's long position.| PetroChina vs. Zotye Automobile Co | PetroChina vs. Zhejiang Qianjiang Motorcycle | PetroChina vs. Miracll Chemicals Co | PetroChina vs. Bus Online Co |
| Wonders Information vs. China Petroleum Chemical | Wonders Information vs. PetroChina Co Ltd | Wonders Information vs. China State Construction | Wonders Information vs. China Railway Group |
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.
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