Correlation Between PetroChina and Loctek Ergonomic
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By analyzing existing cross correlation between PetroChina Co Ltd and Loctek Ergonomic Technology, you can compare the effects of market volatilities on PetroChina and Loctek Ergonomic 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 Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Loctek Ergonomic.
Diversification Opportunities for PetroChina and Loctek Ergonomic
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PetroChina and Loctek is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Loctek Ergonomic Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loctek Ergonomic Tec 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 Loctek Ergonomic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loctek Ergonomic Tec has no effect on the direction of PetroChina i.e., PetroChina and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between PetroChina and Loctek Ergonomic
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.69 times more return on investment than Loctek Ergonomic. However, PetroChina Co Ltd is 1.46 times less risky than Loctek Ergonomic. It trades about 0.06 of its potential returns per unit of risk. Loctek Ergonomic Technology is currently generating about 0.02 per unit of risk. If you would invest 500.00 in PetroChina Co Ltd on November 2, 2024 and sell it today you would earn a total of 333.00 from holding PetroChina Co Ltd or generate 66.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| PetroChina |
| Loctek Ergonomic Tec |
PetroChina and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Loctek Ergonomic
The main advantage of trading using opposite PetroChina and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Loctek Ergonomic 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 Loctek Ergonomic will offset losses from the drop in Loctek Ergonomic's long position.| PetroChina vs. Heilongjiang Transport Development | PetroChina vs. Zhongrun Resources Investment | PetroChina vs. Dazhong Transportation Group | PetroChina vs. Longjian Road Bridge |
| Loctek Ergonomic vs. Hengli Petrochemical Co | Loctek Ergonomic vs. De Rucci Healthy | Loctek Ergonomic vs. Liuzhou Chemical Industry | Loctek Ergonomic vs. Liaoning Dingjide Petrochemical |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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