Correlation Between PetroChina and Guangxi Wuzhou
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By analyzing existing cross correlation between PetroChina Co Ltd and Guangxi Wuzhou Communications, you can compare the effects of market volatilities on PetroChina and Guangxi Wuzhou 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 Guangxi Wuzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Guangxi Wuzhou.
Diversification Opportunities for PetroChina and Guangxi Wuzhou
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between PetroChina and Guangxi is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Guangxi Wuzhou Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangxi Wuzhou Commu 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 Guangxi Wuzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangxi Wuzhou Commu has no effect on the direction of PetroChina i.e., PetroChina and Guangxi Wuzhou go up and down completely randomly.
Pair Corralation between PetroChina and Guangxi Wuzhou
Assuming the 90 days trading horizon PetroChina is expected to generate 1.14 times less return on investment than Guangxi Wuzhou. But when comparing it to its historical volatility, PetroChina Co Ltd is 1.12 times less risky than Guangxi Wuzhou. It trades about 0.02 of its potential returns per unit of risk. Guangxi Wuzhou Communications is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 368.00 in Guangxi Wuzhou Communications on September 2, 2024 and sell it today you would earn a total of 21.00 from holding Guangxi Wuzhou Communications or generate 5.71% 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. Guangxi Wuzhou Communications
Performance |
| Timeline |
| PetroChina |
| Guangxi Wuzhou Commu |
PetroChina and Guangxi Wuzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Guangxi Wuzhou
The main advantage of trading using opposite PetroChina and Guangxi Wuzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Guangxi Wuzhou 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 Guangxi Wuzhou will offset losses from the drop in Guangxi Wuzhou's long position.| PetroChina vs. Zotye Automobile Co | PetroChina vs. Zhejiang Qianjiang Motorcycle | PetroChina vs. Miracll Chemicals Co | PetroChina vs. Bus Online Co |
| Guangxi Wuzhou vs. Shanghai Yanpu Metal | Guangxi Wuzhou vs. Guangdong Liantai Environmental | Guangxi Wuzhou vs. Fujian Nanwang Environment | Guangxi Wuzhou vs. Anhui Transport Consulting |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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