Correlation Between PetroChina and COL Digital
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By analyzing existing cross correlation between PetroChina Co Ltd and COL Digital Publishing, you can compare the effects of market volatilities on PetroChina and COL Digital 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 COL Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and COL Digital.
Diversification Opportunities for PetroChina and COL Digital
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between PetroChina and COL is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and COL Digital Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COL Digital Publishing 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 COL Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COL Digital Publishing has no effect on the direction of PetroChina i.e., PetroChina and COL Digital go up and down completely randomly.
Pair Corralation between PetroChina and COL Digital
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the COL Digital. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 5.55 times less risky than COL Digital. The stock trades about -0.12 of its potential returns per unit of risk. The COL Digital Publishing is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 2,771 in COL Digital Publishing on September 4, 2024 and sell it today you would earn a total of 302.00 from holding COL Digital Publishing or generate 10.9% 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. COL Digital Publishing
Performance |
| Timeline |
| PetroChina |
| COL Digital Publishing |
PetroChina and COL Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and COL Digital
The main advantage of trading using opposite PetroChina and COL Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, COL Digital 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 COL Digital will offset losses from the drop in COL Digital's long position.| PetroChina vs. Sichuan Hebang Biotechnology | PetroChina vs. Guangdong Marubi Biotechnology | PetroChina vs. Shandong Sanyuan Biotechnology | PetroChina vs. Bloomage Biotechnology Corp |
| COL Digital vs. Lutian Machinery Co | COL Digital vs. China Longyuan Power | COL Digital vs. PetroChina Co Ltd | COL Digital vs. Bank of China |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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