Correlation Between PetroChina and Gem Year
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By analyzing existing cross correlation between PetroChina Co Ltd and Gem Year Industrial Co, you can compare the effects of market volatilities on PetroChina and Gem Year 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 Gem Year. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Gem Year.
Diversification Opportunities for PetroChina and Gem Year
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Gem is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Gem Year Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gem Year Industrial 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 Gem Year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gem Year Industrial has no effect on the direction of PetroChina i.e., PetroChina and Gem Year go up and down completely randomly.
Pair Corralation between PetroChina and Gem Year
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.83 times more return on investment than Gem Year. However, PetroChina Co Ltd is 1.21 times less risky than Gem Year. It trades about 0.02 of its potential returns per unit of risk. Gem Year Industrial Co is currently generating about 0.01 per unit of risk. If you would invest 764.00 in PetroChina Co Ltd on September 1, 2024 and sell it today you would earn a total of 40.00 from holding PetroChina Co Ltd or generate 5.24% 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. Gem Year Industrial Co
Performance |
| Timeline |
| PetroChina |
| Gem Year Industrial |
PetroChina and Gem Year Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Gem Year
The main advantage of trading using opposite PetroChina and Gem Year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Gem Year 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 Gem Year will offset losses from the drop in Gem Year's long position.| PetroChina vs. Dongjiang Environmental Co | PetroChina vs. Tonghua Grape Wine | PetroChina vs. Dezhan HealthCare Co | PetroChina vs. Guangdong Liantai Environmental |
| Gem Year vs. PetroChina Co Ltd | Gem Year vs. China Mobile Limited | Gem Year vs. CNOOC Limited | Gem Year vs. Ping An Insurance |
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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