Correlation Between PetroChina and Fiberhome Telecommunicatio
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By analyzing existing cross correlation between PetroChina Co Ltd and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on PetroChina and Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Fiberhome Telecommunicatio.
Diversification Opportunities for PetroChina and Fiberhome Telecommunicatio
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between PetroChina and Fiberhome is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiberhome Telecommunicatio has no effect on the direction of PetroChina i.e., PetroChina and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between PetroChina and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.74 times more return on investment than Fiberhome Telecommunicatio. However, PetroChina Co Ltd is 1.35 times less risky than Fiberhome Telecommunicatio. It trades about 0.07 of its potential returns per unit of risk. Fiberhome Telecommunication Technologies is currently generating about 0.03 per unit of risk. If you would invest 495.00 in PetroChina Co Ltd on October 9, 2024 and sell it today you would earn a total of 396.00 from holding PetroChina Co Ltd or generate 80.0% 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. Fiberhome Telecommunication Te
Performance |
| Timeline |
| PetroChina |
| Fiberhome Telecommunicatio |
PetroChina and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Fiberhome Telecommunicatio
The main advantage of trading using opposite PetroChina and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio will offset losses from the drop in Fiberhome Telecommunicatio's long position.| PetroChina vs. Guangdong Wens Foodstuff | PetroChina vs. Ningxia Xiaoming Agriculture | PetroChina vs. Eastroc Beverage Group | PetroChina vs. Guangzhou Seagull Kitchen |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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