Correlation Between PetroChina and Beijing Sanyuan
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By analyzing existing cross correlation between PetroChina Co Ltd and Beijing Sanyuan Foods, you can compare the effects of market volatilities on PetroChina and Beijing Sanyuan 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 Beijing Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Beijing Sanyuan.
Diversification Opportunities for PetroChina and Beijing Sanyuan
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between PetroChina and Beijing is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Beijing Sanyuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Sanyuan Foods 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 Beijing Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Sanyuan Foods has no effect on the direction of PetroChina i.e., PetroChina and Beijing Sanyuan go up and down completely randomly.
Pair Corralation between PetroChina and Beijing Sanyuan
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 1.16 times more return on investment than Beijing Sanyuan. However, PetroChina is 1.16 times more volatile than Beijing Sanyuan Foods. It trades about 0.03 of its potential returns per unit of risk. Beijing Sanyuan Foods is currently generating about -0.01 per unit of risk. If you would invest 720.00 in PetroChina Co Ltd on August 29, 2024 and sell it today you would earn a total of 82.00 from holding PetroChina Co Ltd or generate 11.39% 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. Beijing Sanyuan Foods
Performance |
| Timeline |
| PetroChina |
| Beijing Sanyuan Foods |
PetroChina and Beijing Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Beijing Sanyuan
The main advantage of trading using opposite PetroChina and Beijing Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Beijing Sanyuan 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 Beijing Sanyuan will offset losses from the drop in Beijing Sanyuan's long position.| PetroChina vs. Guilin Seamild Foods | PetroChina vs. Great Sun Foods Co | PetroChina vs. Jiahe Foods Industry | PetroChina vs. Lander Sports Development |
| Beijing Sanyuan vs. Heilongjiang Transport Development | Beijing Sanyuan vs. Hainan Haiqi Transportation | Beijing Sanyuan vs. Advanced Technology Materials | Beijing Sanyuan vs. GRIPM Advanced Materials |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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