Correlation Between PetroChina and Hangzhou Gisway
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By analyzing existing cross correlation between PetroChina Co Ltd and Hangzhou Gisway Information, you can compare the effects of market volatilities on PetroChina and Hangzhou Gisway 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 Hangzhou Gisway. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Hangzhou Gisway.
Diversification Opportunities for PetroChina and Hangzhou Gisway
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between PetroChina and Hangzhou is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Hangzhou Gisway Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Gisway Info 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 Hangzhou Gisway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Gisway Info has no effect on the direction of PetroChina i.e., PetroChina and Hangzhou Gisway go up and down completely randomly.
Pair Corralation between PetroChina and Hangzhou Gisway
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Hangzhou Gisway. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 1.6 times less risky than Hangzhou Gisway. The stock trades about -0.06 of its potential returns per unit of risk. The Hangzhou Gisway Information is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,264 in Hangzhou Gisway Information on September 3, 2024 and sell it today you would lose (30.00) from holding Hangzhou Gisway Information or give up 0.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Hangzhou Gisway Information
Performance |
| Timeline |
| PetroChina |
| Hangzhou Gisway Info |
PetroChina and Hangzhou Gisway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Hangzhou Gisway
The main advantage of trading using opposite PetroChina and Hangzhou Gisway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Hangzhou Gisway 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 Hangzhou Gisway will offset losses from the drop in Hangzhou Gisway's long position.| PetroChina vs. China Express Airlines | PetroChina vs. Xinhua Winshare Publishing | PetroChina vs. Jinhui Liquor Co | PetroChina vs. Beijing Kaiwen Education |
| Hangzhou Gisway vs. Fujian Longzhou Transportation | Hangzhou Gisway vs. Hainan Haiqi Transportation | Hangzhou Gisway vs. Broadex Technologies Co | Hangzhou Gisway vs. Heilongjiang Transport Development |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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