Correlation Between PetroChina and Xinjiang Tianrun
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By analyzing existing cross correlation between PetroChina Co Ltd and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on PetroChina and Xinjiang Tianrun 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 Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Xinjiang Tianrun.
Diversification Opportunities for PetroChina and Xinjiang Tianrun
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Xinjiang is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Xinjiang Tianrun Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianrun Dairy 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 Xinjiang Tianrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianrun Dairy has no effect on the direction of PetroChina i.e., PetroChina and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between PetroChina and Xinjiang Tianrun
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.96 times more return on investment than Xinjiang Tianrun. However, PetroChina Co Ltd is 1.04 times less risky than Xinjiang Tianrun. It trades about 0.06 of its potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about -0.04 per unit of risk. If you would invest 484.00 in PetroChina Co Ltd on August 31, 2024 and sell it today you would earn a total of 320.00 from holding PetroChina Co Ltd or generate 66.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.78% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| PetroChina |
| Xinjiang Tianrun Dairy |
PetroChina and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Xinjiang Tianrun
The main advantage of trading using opposite PetroChina and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Xinjiang Tianrun 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 Xinjiang Tianrun will offset losses from the drop in Xinjiang Tianrun's long position.| PetroChina vs. Zhejiang Kingland Pipeline | PetroChina vs. Gansu Jiu Steel | PetroChina vs. Ming Yang Smart | PetroChina vs. Aba Chemicals Corp |
| Xinjiang Tianrun vs. Lutian Machinery Co | Xinjiang Tianrun vs. PetroChina Co Ltd | Xinjiang Tianrun vs. Bank of China | Xinjiang Tianrun vs. Gansu Jiu Steel |
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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