Correlation Between PetroChina and Huaxia Eye
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By analyzing existing cross correlation between PetroChina Co Ltd and Huaxia Eye Hospital, you can compare the effects of market volatilities on PetroChina and Huaxia Eye 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 Huaxia Eye. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Huaxia Eye.
Diversification Opportunities for PetroChina and Huaxia Eye
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PetroChina and Huaxia is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Huaxia Eye Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaxia Eye Hospital 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 Huaxia Eye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaxia Eye Hospital has no effect on the direction of PetroChina i.e., PetroChina and Huaxia Eye go up and down completely randomly.
Pair Corralation between PetroChina and Huaxia Eye
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Huaxia Eye. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 1.85 times less risky than Huaxia Eye. The stock trades about -0.05 of its potential returns per unit of risk. The Huaxia Eye Hospital is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,008 in Huaxia Eye Hospital on October 16, 2024 and sell it today you would lose (240.00) from holding Huaxia Eye Hospital or give up 11.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Huaxia Eye Hospital
Performance |
| Timeline |
| PetroChina |
| Huaxia Eye Hospital |
PetroChina and Huaxia Eye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Huaxia Eye
The main advantage of trading using opposite PetroChina and Huaxia Eye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Huaxia Eye 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 Huaxia Eye will offset losses from the drop in Huaxia Eye's long position.| PetroChina vs. Qijing Machinery | PetroChina vs. Allied Machinery Co | PetroChina vs. Hunan Tyen Machinery | PetroChina vs. Masterwork Machinery |
| Huaxia Eye vs. Shandong Longquan Pipeline | Huaxia Eye vs. Guangdong Shenglu Telecommunication | Huaxia Eye vs. Tongyu Communication | Huaxia Eye vs. Hongrun Construction Group |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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