Correlation Between PetroChina and Tianjin Realty
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By analyzing existing cross correlation between PetroChina Co Ltd and Tianjin Realty Development, you can compare the effects of market volatilities on PetroChina and Tianjin Realty 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 Tianjin Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Tianjin Realty.
Diversification Opportunities for PetroChina and Tianjin Realty
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between PetroChina and Tianjin is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Tianjin Realty Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Realty Devel 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 Tianjin Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Realty Devel has no effect on the direction of PetroChina i.e., PetroChina and Tianjin Realty go up and down completely randomly.
Pair Corralation between PetroChina and Tianjin Realty
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.53 times more return on investment than Tianjin Realty. However, PetroChina Co Ltd is 1.89 times less risky than Tianjin Realty. It trades about 0.07 of its potential returns per unit of risk. Tianjin Realty Development is currently generating about 0.03 per unit of risk. If you would invest 484.00 in PetroChina Co Ltd on September 26, 2024 and sell it today you would earn a total of 394.00 from holding PetroChina Co Ltd or generate 81.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Tianjin Realty Development
Performance |
| Timeline |
| PetroChina |
| Tianjin Realty Devel |
PetroChina and Tianjin Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Tianjin Realty
The main advantage of trading using opposite PetroChina and Tianjin Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Tianjin Realty 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 Tianjin Realty will offset losses from the drop in Tianjin Realty's long position.| PetroChina vs. Zhejiang Kingland Pipeline | PetroChina vs. Jiangsu Zhongtian Technology | PetroChina vs. Shaanxi Beiyuan Chemical | PetroChina vs. Sinomine Resource Exploration |
| Tianjin Realty vs. PetroChina Co Ltd | Tianjin Realty vs. China Mobile Limited | Tianjin Realty vs. CNOOC Limited | Tianjin Realty vs. Ping An Insurance |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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