Correlation Between PetroChina and Harbin Air
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By analyzing existing cross correlation between PetroChina Co Ltd and Harbin Air Conditioning, you can compare the effects of market volatilities on PetroChina and Harbin Air 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 Harbin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Harbin Air.
Diversification Opportunities for PetroChina and Harbin Air
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between PetroChina and Harbin is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Harbin Air Conditioning in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbin Air Conditioning 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 Harbin Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbin Air Conditioning has no effect on the direction of PetroChina i.e., PetroChina and Harbin Air go up and down completely randomly.
Pair Corralation between PetroChina and Harbin Air
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Harbin Air. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 1.89 times less risky than Harbin Air. The stock trades about -0.41 of its potential returns per unit of risk. The Harbin Air Conditioning is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 446.00 in Harbin Air Conditioning on November 27, 2024 and sell it today you would earn a total of 36.00 from holding Harbin Air Conditioning or generate 8.07% 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. Harbin Air Conditioning
Performance |
| Timeline |
| PetroChina |
| Harbin Air Conditioning |
PetroChina and Harbin Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Harbin Air
The main advantage of trading using opposite PetroChina and Harbin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Harbin Air 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 Harbin Air will offset losses from the drop in Harbin Air's long position.| PetroChina vs. Xinxiang Chemical Fiber | PetroChina vs. Duzhe Publishing Media | PetroChina vs. Mega info Media CoLtd | PetroChina vs. Longxing Chemical Stock |
| Harbin Air vs. Shuhua Sports Co | Harbin Air vs. JCHX Mining Management | Harbin Air vs. Hefei Metalforming Mach | Harbin Air vs. Shanghai Xinhua Media |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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