Correlation Between PetroChina and Keda Clean
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By analyzing existing cross correlation between PetroChina Co Ltd and Keda Clean Energy, you can compare the effects of market volatilities on PetroChina and Keda Clean 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 Keda Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Keda Clean.
Diversification Opportunities for PetroChina and Keda Clean
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Keda is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Keda Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keda Clean Energy 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 Keda Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keda Clean Energy has no effect on the direction of PetroChina i.e., PetroChina and Keda Clean go up and down completely randomly.
Pair Corralation between PetroChina and Keda Clean
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Keda Clean. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 1.91 times less risky than Keda Clean. The stock trades about -0.17 of its potential returns per unit of risk. The Keda Clean Energy is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 816.00 in Keda Clean Energy on August 28, 2024 and sell it today you would earn a total of 25.00 from holding Keda Clean Energy or generate 3.06% 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. Keda Clean Energy
Performance |
| Timeline |
| PetroChina |
| Keda Clean Energy |
PetroChina and Keda Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Keda Clean
The main advantage of trading using opposite PetroChina and Keda Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Keda Clean 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 Keda Clean will offset losses from the drop in Keda Clean's long position.| PetroChina vs. Sunwave Communications Co | PetroChina vs. City Development Environment | PetroChina vs. Gansu Jiu Steel | PetroChina vs. GreenTech Environmental Co |
| Keda Clean vs. Biwin Storage Technology | Keda Clean vs. PetroChina Co Ltd | Keda Clean vs. Industrial and Commercial | Keda Clean vs. China Construction Bank |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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