Correlation Between PetroChina and Maccura Biotechnology
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By analyzing existing cross correlation between PetroChina Co Ltd and Maccura Biotechnology Co, you can compare the effects of market volatilities on PetroChina and Maccura Biotechnology 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 Maccura Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Maccura Biotechnology.
Diversification Opportunities for PetroChina and Maccura Biotechnology
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PetroChina and Maccura is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Maccura Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maccura Biotechnology 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 Maccura Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maccura Biotechnology has no effect on the direction of PetroChina i.e., PetroChina and Maccura Biotechnology go up and down completely randomly.
Pair Corralation between PetroChina and Maccura Biotechnology
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Maccura Biotechnology. In addition to that, PetroChina is 1.1 times more volatile than Maccura Biotechnology Co. It trades about -0.25 of its total potential returns per unit of risk. Maccura Biotechnology Co is currently generating about -0.19 per unit of volatility. If you would invest 1,295 in Maccura Biotechnology Co on November 7, 2024 and sell it today you would lose (60.00) from holding Maccura Biotechnology Co or give up 4.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Maccura Biotechnology Co
Performance |
| Timeline |
| PetroChina |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Maccura Biotechnology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PetroChina and Maccura Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Maccura Biotechnology
The main advantage of trading using opposite PetroChina and Maccura Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Maccura Biotechnology 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 Maccura Biotechnology will offset losses from the drop in Maccura Biotechnology's long position.The idea behind PetroChina Co Ltd and Maccura Biotechnology Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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