Correlation Between PetroChina and Sanan Optoelectronics
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By analyzing existing cross correlation between PetroChina Co Ltd and Sanan Optoelectronics Co, you can compare the effects of market volatilities on PetroChina and Sanan Optoelectronics 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 Sanan Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Sanan Optoelectronics.
Diversification Opportunities for PetroChina and Sanan Optoelectronics
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PetroChina and Sanan is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Sanan Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanan Optoelectronics 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 Sanan Optoelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanan Optoelectronics has no effect on the direction of PetroChina i.e., PetroChina and Sanan Optoelectronics go up and down completely randomly.
Pair Corralation between PetroChina and Sanan Optoelectronics
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Sanan Optoelectronics. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 1.11 times less risky than Sanan Optoelectronics. The stock trades about -0.17 of its potential returns per unit of risk. The Sanan Optoelectronics Co is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 1,172 in Sanan Optoelectronics Co on November 2, 2024 and sell it today you would lose (26.00) from holding Sanan Optoelectronics Co or give up 2.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Sanan Optoelectronics Co
Performance |
| Timeline |
| PetroChina |
| Sanan Optoelectronics |
PetroChina and Sanan Optoelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Sanan Optoelectronics
The main advantage of trading using opposite PetroChina and Sanan Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Sanan Optoelectronics 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 Sanan Optoelectronics will offset losses from the drop in Sanan Optoelectronics' long position.| PetroChina vs. Tongyu Communication | PetroChina vs. China Mobile Limited | PetroChina vs. CICT Mobile Communication | PetroChina vs. Wintao Communications Co |
| Sanan Optoelectronics vs. SSAW Hotels Resorts | Sanan Optoelectronics vs. Sichuan Fulin Transportation | Sanan Optoelectronics vs. Qijing Machinery | Sanan Optoelectronics vs. Guangzhou Dongfang Hotel |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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