Correlation Between PetroChina and Gansu Jiu
Specify exactly 2 symbols:
By analyzing existing cross correlation between PetroChina Co Ltd and Gansu Jiu Steel, you can compare the effects of market volatilities on PetroChina and Gansu Jiu 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 Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Gansu Jiu.
Diversification Opportunities for PetroChina and Gansu Jiu
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Gansu is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Gansu Jiu Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Jiu Steel 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 Gansu Jiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Jiu Steel has no effect on the direction of PetroChina i.e., PetroChina and Gansu Jiu go up and down completely randomly.
Pair Corralation between PetroChina and Gansu Jiu
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.25 times more return on investment than Gansu Jiu. However, PetroChina Co Ltd is 4.06 times less risky than Gansu Jiu. It trades about -0.04 of its potential returns per unit of risk. Gansu Jiu Steel is currently generating about -0.1 per unit of risk. If you would invest 811.00 in PetroChina Co Ltd on August 31, 2024 and sell it today you would lose (8.00) from holding PetroChina Co Ltd or give up 0.99% 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. Gansu Jiu Steel
Performance |
| Timeline |
| PetroChina |
| Gansu Jiu Steel |
PetroChina and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Gansu Jiu
The main advantage of trading using opposite PetroChina and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Gansu Jiu 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 Gansu Jiu will offset losses from the drop in Gansu Jiu's long position.| PetroChina vs. Zhejiang Kingland Pipeline | PetroChina vs. Gansu Jiu Steel | PetroChina vs. Ming Yang Smart | PetroChina vs. Aba Chemicals Corp |
| Gansu Jiu vs. China Sports Industry | Gansu Jiu vs. Sichuan Fulin Transportation | Gansu Jiu vs. Guizhou Chanhen Chemical | Gansu Jiu vs. Lianhe Chemical Technology |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |