Correlation Between PetroChina and Nuode Investment
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By analyzing existing cross correlation between PetroChina Co Ltd and Nuode Investment Co, you can compare the effects of market volatilities on PetroChina and Nuode Investment 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 Nuode Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Nuode Investment.
Diversification Opportunities for PetroChina and Nuode Investment
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Nuode is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Nuode Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuode Investment 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 Nuode Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuode Investment has no effect on the direction of PetroChina i.e., PetroChina and Nuode Investment go up and down completely randomly.
Pair Corralation between PetroChina and Nuode Investment
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Nuode Investment. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 2.19 times less risky than Nuode Investment. The stock trades about 0.0 of its potential returns per unit of risk. The Nuode Investment Co is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 308.00 in Nuode Investment Co on September 4, 2024 and sell it today you would earn a total of 155.00 from holding Nuode Investment Co or generate 50.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Nuode Investment Co
Performance |
| Timeline |
| PetroChina |
| Nuode Investment |
PetroChina and Nuode Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Nuode Investment
The main advantage of trading using opposite PetroChina and Nuode Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Nuode Investment 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 Nuode Investment will offset losses from the drop in Nuode Investment's long position.| PetroChina vs. Sichuan Hebang Biotechnology | PetroChina vs. Guangdong Marubi Biotechnology | PetroChina vs. Shandong Sanyuan Biotechnology | PetroChina vs. Bloomage Biotechnology Corp |
| Nuode Investment vs. Biwin Storage Technology | Nuode Investment vs. PetroChina Co Ltd | Nuode Investment vs. Industrial and Commercial | Nuode Investment vs. China Construction Bank |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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