Correlation Between PetroChina and Guangdong Wens
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By analyzing existing cross correlation between PetroChina Co Ltd and Guangdong Wens Foodstuff, you can compare the effects of market volatilities on PetroChina and Guangdong Wens 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 Guangdong Wens. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Guangdong Wens.
Diversification Opportunities for PetroChina and Guangdong Wens
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PetroChina and Guangdong is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Guangdong Wens Foodstuff in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Wens Foodstuff 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 Guangdong Wens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Wens Foodstuff has no effect on the direction of PetroChina i.e., PetroChina and Guangdong Wens go up and down completely randomly.
Pair Corralation between PetroChina and Guangdong Wens
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Guangdong Wens. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 1.4 times less risky than Guangdong Wens. The stock trades about -0.07 of its potential returns per unit of risk. The Guangdong Wens Foodstuff is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,676 in Guangdong Wens Foodstuff on September 2, 2024 and sell it today you would earn a total of 58.00 from holding Guangdong Wens Foodstuff or generate 3.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Guangdong Wens Foodstuff
Performance |
| Timeline |
| PetroChina |
| Guangdong Wens Foodstuff |
PetroChina and Guangdong Wens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Guangdong Wens
The main advantage of trading using opposite PetroChina and Guangdong Wens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Guangdong Wens 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 Guangdong Wens will offset losses from the drop in Guangdong Wens' long position.| PetroChina vs. Zotye Automobile Co | PetroChina vs. Zhejiang Qianjiang Motorcycle | PetroChina vs. Miracll Chemicals Co | PetroChina vs. Bus Online Co |
| Guangdong Wens vs. Henan Shuanghui Investment | Guangdong Wens vs. Sportsoul Co Ltd | Guangdong Wens vs. Shuhua Sports Co | Guangdong Wens vs. Metro Investment Development |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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