Correlation Between PetroChina and Jiangxi Naipu
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By analyzing existing cross correlation between PetroChina Co Ltd and Jiangxi Naipu Mining, you can compare the effects of market volatilities on PetroChina and Jiangxi Naipu 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 Jiangxi Naipu. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Jiangxi Naipu.
Diversification Opportunities for PetroChina and Jiangxi Naipu
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Jiangxi is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Jiangxi Naipu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Naipu Mining 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 Jiangxi Naipu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Naipu Mining has no effect on the direction of PetroChina i.e., PetroChina and Jiangxi Naipu go up and down completely randomly.
Pair Corralation between PetroChina and Jiangxi Naipu
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.73 times more return on investment than Jiangxi Naipu. However, PetroChina Co Ltd is 1.37 times less risky than Jiangxi Naipu. It trades about 0.06 of its potential returns per unit of risk. Jiangxi Naipu Mining is currently generating about 0.04 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Jiangxi Naipu Mining
Performance |
| Timeline |
| PetroChina |
| Jiangxi Naipu Mining |
PetroChina and Jiangxi Naipu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Jiangxi Naipu
The main advantage of trading using opposite PetroChina and Jiangxi Naipu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Jiangxi Naipu 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 Jiangxi Naipu will offset losses from the drop in Jiangxi Naipu's long position.| PetroChina vs. Heilongjiang Transport Development | PetroChina vs. Zhongrun Resources Investment | PetroChina vs. Dazhong Transportation Group | PetroChina vs. Longjian Road Bridge |
| Jiangxi Naipu vs. Industrial and Commercial | Jiangxi Naipu vs. Kweichow Moutai Co | Jiangxi Naipu vs. Agricultural Bank of | Jiangxi Naipu vs. China Mobile Limited |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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