Correlation Between PetroChina and Iat Automobile
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By analyzing existing cross correlation between PetroChina Co Ltd and Iat Automobile Technology, you can compare the effects of market volatilities on PetroChina and Iat Automobile 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 Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Iat Automobile.
Diversification Opportunities for PetroChina and Iat Automobile
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between PetroChina and Iat is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Iat Automobile Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iat Automobile Technology 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 Iat Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iat Automobile Technology has no effect on the direction of PetroChina i.e., PetroChina and Iat Automobile go up and down completely randomly.
Pair Corralation between PetroChina and Iat Automobile
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Iat Automobile. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 2.0 times less risky than Iat Automobile. The stock trades about -0.07 of its potential returns per unit of risk. The Iat Automobile Technology is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,204 in Iat Automobile Technology on September 3, 2024 and sell it today you would earn a total of 26.00 from holding Iat Automobile Technology or generate 2.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Iat Automobile Technology
Performance |
| Timeline |
| PetroChina |
| Iat Automobile Technology |
PetroChina and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Iat Automobile
The main advantage of trading using opposite PetroChina and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Iat Automobile 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 Iat Automobile will offset losses from the drop in Iat Automobile's long position.| PetroChina vs. China Express Airlines | PetroChina vs. Xinhua Winshare Publishing | PetroChina vs. Jinhui Liquor Co | PetroChina vs. Beijing Kaiwen Education |
| Iat Automobile vs. PetroChina Co Ltd | Iat Automobile vs. China Mobile Limited | Iat Automobile vs. Industrial and Commercial | Iat Automobile vs. China Life Insurance |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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