Correlation Between PetroChina and Guangzhou Hongli
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By analyzing existing cross correlation between PetroChina Co Ltd and Guangzhou Hongli Opto, you can compare the effects of market volatilities on PetroChina and Guangzhou Hongli 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 Guangzhou Hongli. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Guangzhou Hongli.
Diversification Opportunities for PetroChina and Guangzhou Hongli
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Guangzhou is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Guangzhou Hongli Opto in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Hongli Opto 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 Guangzhou Hongli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Hongli Opto has no effect on the direction of PetroChina i.e., PetroChina and Guangzhou Hongli go up and down completely randomly.
Pair Corralation between PetroChina and Guangzhou Hongli
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.69 times more return on investment than Guangzhou Hongli. However, PetroChina Co Ltd is 1.46 times less risky than Guangzhou Hongli. It trades about 0.06 of its potential returns per unit of risk. Guangzhou Hongli Opto is currently generating about 0.01 per unit of risk. If you would invest 502.00 in PetroChina Co Ltd on October 29, 2024 and sell it today you would earn a total of 320.00 from holding PetroChina Co Ltd or generate 63.75% 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. Guangzhou Hongli Opto
Performance |
| Timeline |
| PetroChina |
| Guangzhou Hongli Opto |
PetroChina and Guangzhou Hongli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Guangzhou Hongli
The main advantage of trading using opposite PetroChina and Guangzhou Hongli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Guangzhou Hongli 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 Guangzhou Hongli will offset losses from the drop in Guangzhou Hongli's long position.| PetroChina vs. Shenzhen Topway Video | PetroChina vs. Ningbo Fangzheng Automobile | PetroChina vs. Zotye Automobile Co | PetroChina vs. Meinian Onehealth Healthcare |
| Guangzhou Hongli vs. Cloud Live Technology | Guangzhou Hongli vs. Nanjing Putian Telecommunications | Guangzhou Hongli vs. Shenzhen Coship Electronics | Guangzhou Hongli vs. Shenzhen Hifuture Electric |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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