Correlation Between PetroChina and CIMC Vehicles
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By analyzing existing cross correlation between PetroChina Co Ltd and CIMC Vehicles Co, you can compare the effects of market volatilities on PetroChina and CIMC Vehicles 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 CIMC Vehicles. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and CIMC Vehicles.
Diversification Opportunities for PetroChina and CIMC Vehicles
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PetroChina and CIMC is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and CIMC Vehicles Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMC Vehicles 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 CIMC Vehicles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIMC Vehicles has no effect on the direction of PetroChina i.e., PetroChina and CIMC Vehicles go up and down completely randomly.
Pair Corralation between PetroChina and CIMC Vehicles
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.71 times more return on investment than CIMC Vehicles. However, PetroChina Co Ltd is 1.41 times less risky than CIMC Vehicles. It trades about 0.13 of its potential returns per unit of risk. CIMC Vehicles Co is currently generating about -0.19 per unit of risk. If you would invest 809.00 in PetroChina Co Ltd on September 12, 2024 and sell it today you would earn a total of 27.00 from holding PetroChina Co Ltd or generate 3.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. CIMC Vehicles Co
Performance |
| Timeline |
| PetroChina |
| CIMC Vehicles |
PetroChina and CIMC Vehicles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and CIMC Vehicles
The main advantage of trading using opposite PetroChina and CIMC Vehicles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, CIMC Vehicles 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 CIMC Vehicles will offset losses from the drop in CIMC Vehicles' long position.| PetroChina vs. Digital China Information | PetroChina vs. DO Home Collection | PetroChina vs. Tongding Interconnection Information | PetroChina vs. Guangzhou Dongfang Hotel |
| CIMC Vehicles vs. Agricultural Bank of | CIMC Vehicles vs. Industrial and Commercial | CIMC Vehicles vs. Bank of China | CIMC Vehicles vs. PetroChina Co Ltd |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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