Correlation Between PetroChina and Contec Medical
Specify exactly 2 symbols:
By analyzing existing cross correlation between PetroChina Co Ltd and Contec Medical Systems, you can compare the effects of market volatilities on PetroChina and Contec Medical 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 Contec Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Contec Medical.
Diversification Opportunities for PetroChina and Contec Medical
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between PetroChina and Contec is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Contec Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contec Medical Systems 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 Contec Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contec Medical Systems has no effect on the direction of PetroChina i.e., PetroChina and Contec Medical go up and down completely randomly.
Pair Corralation between PetroChina and Contec Medical
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.44 times more return on investment than Contec Medical. However, PetroChina Co Ltd is 2.27 times less risky than Contec Medical. It trades about -0.17 of its potential returns per unit of risk. Contec Medical Systems is currently generating about -0.14 per unit of risk. If you would invest 837.00 in PetroChina Co Ltd on August 29, 2024 and sell it today you would lose (35.00) from holding PetroChina Co Ltd or give up 4.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Contec Medical Systems
Performance |
| Timeline |
| PetroChina |
| Contec Medical Systems |
PetroChina and Contec Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Contec Medical
The main advantage of trading using opposite PetroChina and Contec Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Contec Medical 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 Contec Medical will offset losses from the drop in Contec Medical's long position.| PetroChina vs. Jahen Household Products | PetroChina vs. China Railway Materials | PetroChina vs. Shaanxi Meineng Clean | PetroChina vs. Guangzhou Seagull Kitchen |
| Contec Medical vs. Bank of China | Contec Medical vs. Kweichow Moutai Co | Contec Medical vs. PetroChina Co Ltd | Contec Medical vs. Bank of Communications |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |