Correlation Between PetroChina and Suzhou Fushilai
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By analyzing existing cross correlation between PetroChina Co Ltd and Suzhou Fushilai Pharmaceutical, you can compare the effects of market volatilities on PetroChina and Suzhou Fushilai 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 Suzhou Fushilai. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Suzhou Fushilai.
Diversification Opportunities for PetroChina and Suzhou Fushilai
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PetroChina and Suzhou is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Suzhou Fushilai Pharmaceutical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Fushilai Phar 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 Suzhou Fushilai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Fushilai Phar has no effect on the direction of PetroChina i.e., PetroChina and Suzhou Fushilai go up and down completely randomly.
Pair Corralation between PetroChina and Suzhou Fushilai
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Suzhou Fushilai. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 1.11 times less risky than Suzhou Fushilai. The stock trades about -0.25 of its potential returns per unit of risk. The Suzhou Fushilai Pharmaceutical is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,262 in Suzhou Fushilai Pharmaceutical on November 5, 2024 and sell it today you would earn a total of 68.00 from holding Suzhou Fushilai Pharmaceutical or generate 3.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Suzhou Fushilai Pharmaceutical
Performance |
| Timeline |
| PetroChina |
| Suzhou Fushilai Phar |
PetroChina and Suzhou Fushilai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Suzhou Fushilai
The main advantage of trading using opposite PetroChina and Suzhou Fushilai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Suzhou Fushilai 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 Suzhou Fushilai will offset losses from the drop in Suzhou Fushilai's long position.| PetroChina vs. Fujian Longzhou Transportation | PetroChina vs. Eyebright Medical Technology | PetroChina vs. Cabio Biotech Wuhan | PetroChina vs. Montage Technology Co |
| Suzhou Fushilai vs. Juneyao Airlines | Suzhou Fushilai vs. Tianjin Ruixin Technology | Suzhou Fushilai vs. Shenzhen Topway Video | Suzhou Fushilai vs. Guangzhou Dongfang Hotel |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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