Correlation Between PetroChina and Hengerda New
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By analyzing existing cross correlation between PetroChina Co Ltd and Hengerda New Materials, you can compare the effects of market volatilities on PetroChina and Hengerda New 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 Hengerda New. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Hengerda New.
Diversification Opportunities for PetroChina and Hengerda New
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between PetroChina and Hengerda is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Hengerda New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengerda New Materials 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 Hengerda New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengerda New Materials has no effect on the direction of PetroChina i.e., PetroChina and Hengerda New go up and down completely randomly.
Pair Corralation between PetroChina and Hengerda New
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.62 times more return on investment than Hengerda New. However, PetroChina Co Ltd is 1.6 times less risky than Hengerda New. It trades about 0.06 of its potential returns per unit of risk. Hengerda New Materials is currently generating about 0.01 per unit of risk. If you would invest 490.00 in PetroChina Co Ltd on September 3, 2024 and sell it today you would earn a total of 312.00 from holding PetroChina Co Ltd or generate 63.67% 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. Hengerda New Materials
Performance |
| Timeline |
| PetroChina |
| Hengerda New Materials |
PetroChina and Hengerda New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Hengerda New
The main advantage of trading using opposite PetroChina and Hengerda New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Hengerda New 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 Hengerda New will offset losses from the drop in Hengerda New's long position.| PetroChina vs. China Express Airlines | PetroChina vs. Xinhua Winshare Publishing | PetroChina vs. Jinhui Liquor Co | PetroChina vs. Beijing Kaiwen Education |
| Hengerda New vs. Cultural Investment Holdings | Hengerda New vs. Gome Telecom Equipment | Hengerda New vs. Bus Online Co | Hengerda New vs. Holitech Technology Co |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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