Correlation Between PetroChina and Anker Innovations
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By analyzing existing cross correlation between PetroChina Co Ltd and Anker Innovations Technology, you can compare the effects of market volatilities on PetroChina and Anker Innovations 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 Anker Innovations. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Anker Innovations.
Diversification Opportunities for PetroChina and Anker Innovations
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PetroChina and Anker is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Anker Innovations Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anker Innovations 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 Anker Innovations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anker Innovations has no effect on the direction of PetroChina i.e., PetroChina and Anker Innovations go up and down completely randomly.
Pair Corralation between PetroChina and Anker Innovations
Assuming the 90 days trading horizon PetroChina is expected to generate 3.84 times less return on investment than Anker Innovations. But when comparing it to its historical volatility, PetroChina Co Ltd is 1.74 times less risky than Anker Innovations. It trades about 0.12 of its potential returns per unit of risk. Anker Innovations Technology is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 8,950 in Anker Innovations Technology on October 15, 2024 and sell it today you would earn a total of 1,300 from holding Anker Innovations Technology or generate 14.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Anker Innovations Technology
Performance |
| Timeline |
| PetroChina |
| Anker Innovations |
PetroChina and Anker Innovations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Anker Innovations
The main advantage of trading using opposite PetroChina and Anker Innovations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Anker Innovations 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 Anker Innovations will offset losses from the drop in Anker Innovations' long position.| PetroChina vs. Anhui Transport Consulting | PetroChina vs. Heilongjiang Transport Development | PetroChina vs. TongFu Microelectronics Co | PetroChina vs. Success Electronics |
| Anker Innovations vs. Harvest Fund Management | Anker Innovations vs. Zhejiang Construction Investment | Anker Innovations vs. Shenzhen Centralcon Investment | Anker Innovations vs. Harbin Hatou Investment |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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