Correlation Between PetroChina and Saurer Intelligent
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By analyzing existing cross correlation between PetroChina Co Ltd and Saurer Intelligent Technology, you can compare the effects of market volatilities on PetroChina and Saurer Intelligent 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 Saurer Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Saurer Intelligent.
Diversification Opportunities for PetroChina and Saurer Intelligent
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Saurer is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Saurer Intelligent Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saurer Intelligent 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 Saurer Intelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saurer Intelligent has no effect on the direction of PetroChina i.e., PetroChina and Saurer Intelligent go up and down completely randomly.
Pair Corralation between PetroChina and Saurer Intelligent
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Saurer Intelligent. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 1.69 times less risky than Saurer Intelligent. The stock trades about -0.07 of its potential returns per unit of risk. The Saurer Intelligent Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 199.00 in Saurer Intelligent Technology on September 3, 2024 and sell it today you would earn a total of 19.00 from holding Saurer Intelligent Technology or generate 9.55% 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. Saurer Intelligent Technology
Performance |
| Timeline |
| PetroChina |
| Saurer Intelligent |
PetroChina and Saurer Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Saurer Intelligent
The main advantage of trading using opposite PetroChina and Saurer Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Saurer Intelligent 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 Saurer Intelligent will offset losses from the drop in Saurer Intelligent's long position.| PetroChina vs. China Express Airlines | PetroChina vs. Xinhua Winshare Publishing | PetroChina vs. Jinhui Liquor Co | PetroChina vs. Beijing Kaiwen Education |
| Saurer Intelligent vs. Cultural Investment Holdings | Saurer Intelligent vs. Gome Telecom Equipment | Saurer Intelligent vs. Bus Online Co | Saurer Intelligent vs. Holitech Technology Co |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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