Correlation Between PetroChina and Rongcheer Industrial
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By analyzing existing cross correlation between PetroChina Co Ltd and Rongcheer Industrial Technology, you can compare the effects of market volatilities on PetroChina and Rongcheer Industrial 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 Rongcheer Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Rongcheer Industrial.
Diversification Opportunities for PetroChina and Rongcheer Industrial
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PetroChina and Rongcheer is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Rongcheer Industrial Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rongcheer Industrial 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 Rongcheer Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rongcheer Industrial has no effect on the direction of PetroChina i.e., PetroChina and Rongcheer Industrial go up and down completely randomly.
Pair Corralation between PetroChina and Rongcheer Industrial
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.47 times more return on investment than Rongcheer Industrial. However, PetroChina Co Ltd is 2.12 times less risky than Rongcheer Industrial. It trades about 0.03 of its potential returns per unit of risk. Rongcheer Industrial Technology is currently generating about 0.0 per unit of risk. If you would invest 756.00 in PetroChina Co Ltd on September 12, 2024 and sell it today you would earn a total of 80.00 from holding PetroChina Co Ltd or generate 10.58% 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. Rongcheer Industrial Technolog
Performance |
| Timeline |
| PetroChina |
| Rongcheer Industrial |
PetroChina and Rongcheer Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Rongcheer Industrial
The main advantage of trading using opposite PetroChina and Rongcheer Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Rongcheer Industrial 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 Rongcheer Industrial will offset losses from the drop in Rongcheer Industrial's long position.| PetroChina vs. Digital China Information | PetroChina vs. DO Home Collection | PetroChina vs. Tongding Interconnection Information | PetroChina vs. Guangzhou Dongfang Hotel |
| Rongcheer Industrial vs. Agricultural Bank of | Rongcheer Industrial vs. Industrial and Commercial | Rongcheer Industrial vs. Bank of China | Rongcheer Industrial 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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