Correlation Between PetroChina and Dongguan Tarry
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By analyzing existing cross correlation between PetroChina Co Ltd and Dongguan Tarry Electronics, you can compare the effects of market volatilities on PetroChina and Dongguan Tarry 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 Dongguan Tarry. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Dongguan Tarry.
Diversification Opportunities for PetroChina and Dongguan Tarry
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PetroChina and Dongguan is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Dongguan Tarry Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongguan Tarry Elect 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 Dongguan Tarry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongguan Tarry Elect has no effect on the direction of PetroChina i.e., PetroChina and Dongguan Tarry go up and down completely randomly.
Pair Corralation between PetroChina and Dongguan Tarry
Assuming the 90 days trading horizon PetroChina is expected to generate 1.67 times less return on investment than Dongguan Tarry. But when comparing it to its historical volatility, PetroChina Co Ltd is 1.84 times less risky than Dongguan Tarry. It trades about 0.04 of its potential returns per unit of risk. Dongguan Tarry Electronics is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 5,064 in Dongguan Tarry Electronics on September 4, 2024 and sell it today you would earn a total of 1,085 from holding Dongguan Tarry Electronics or generate 21.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Dongguan Tarry Electronics
Performance |
| Timeline |
| PetroChina |
| Dongguan Tarry Elect |
PetroChina and Dongguan Tarry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Dongguan Tarry
The main advantage of trading using opposite PetroChina and Dongguan Tarry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Dongguan Tarry 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 Dongguan Tarry will offset losses from the drop in Dongguan Tarry's long position.| PetroChina vs. Sichuan Hebang Biotechnology | PetroChina vs. Guangdong Marubi Biotechnology | PetroChina vs. Shandong Sanyuan Biotechnology | PetroChina vs. Bloomage Biotechnology Corp |
| Dongguan Tarry vs. Bank of China | Dongguan Tarry vs. Kweichow Moutai Co | Dongguan Tarry vs. PetroChina Co Ltd | Dongguan Tarry 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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