Correlation Between PetroChina and Penyao Environmental
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By analyzing existing cross correlation between PetroChina Co Ltd and Penyao Environmental Protection, you can compare the effects of market volatilities on PetroChina and Penyao Environmental 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 Penyao Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Penyao Environmental.
Diversification Opportunities for PetroChina and Penyao Environmental
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PetroChina and Penyao is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Penyao Environmental Protectio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penyao Environmental 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 Penyao Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penyao Environmental has no effect on the direction of PetroChina i.e., PetroChina and Penyao Environmental go up and down completely randomly.
Pair Corralation between PetroChina and Penyao Environmental
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Penyao Environmental. In addition to that, PetroChina is 1.06 times more volatile than Penyao Environmental Protection. It trades about -0.25 of its total potential returns per unit of risk. Penyao Environmental Protection is currently generating about -0.12 per unit of volatility. If you would invest 526.00 in Penyao Environmental Protection on November 6, 2024 and sell it today you would lose (17.00) from holding Penyao Environmental Protection or give up 3.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Penyao Environmental Protectio
Performance |
| Timeline |
| PetroChina |
| Penyao Environmental |
PetroChina and Penyao Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Penyao Environmental
The main advantage of trading using opposite PetroChina and Penyao Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Penyao Environmental 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 Penyao Environmental will offset losses from the drop in Penyao Environmental's long position.| PetroChina vs. China Publishing Media | PetroChina vs. Ningbo MedicalSystem Biotechnology | PetroChina vs. Southern PublishingMedia Co | PetroChina vs. Duzhe Publishing Media |
| Penyao Environmental vs. GRG Banking Equipment | Penyao Environmental vs. Chengtun Mining Group | Penyao Environmental vs. Shenzhen Silver Basis | Penyao Environmental vs. Jinhui Mining Co |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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