Correlation Between PetroChina and Chengdu B
Specify exactly 2 symbols:
By analyzing existing cross correlation between PetroChina Co Ltd and Chengdu B ray Media, you can compare the effects of market volatilities on PetroChina and Chengdu B 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 Chengdu B. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Chengdu B.
Diversification Opportunities for PetroChina and Chengdu B
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between PetroChina and Chengdu is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Chengdu B ray Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu B ray 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 Chengdu B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu B ray has no effect on the direction of PetroChina i.e., PetroChina and Chengdu B go up and down completely randomly.
Pair Corralation between PetroChina and Chengdu B
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Chengdu B. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 1.71 times less risky than Chengdu B. The stock trades about -0.04 of its potential returns per unit of risk. The Chengdu B ray Media is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 376.00 in Chengdu B ray Media on September 26, 2024 and sell it today you would earn a total of 118.00 from holding Chengdu B ray Media or generate 31.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Chengdu B ray Media
Performance |
| Timeline |
| PetroChina |
| Chengdu B ray |
PetroChina and Chengdu B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Chengdu B
The main advantage of trading using opposite PetroChina and Chengdu B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Chengdu B 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 Chengdu B will offset losses from the drop in Chengdu B's long position.| PetroChina vs. Zhejiang Kingland Pipeline | PetroChina vs. Huizhou Speed Wireless | PetroChina vs. Shaanxi Construction Machinery | PetroChina vs. Linktel Technologies Co |
| Chengdu B vs. Agricultural Bank of | Chengdu B vs. Chinese Universe Publishing | Chengdu B vs. HeNan Splendor Science | Chengdu B vs. Shanghai Action Education |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |