Correlation Between PetroChina and Jinling Hotel
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By analyzing existing cross correlation between PetroChina Co Ltd and Jinling Hotel Corp, you can compare the effects of market volatilities on PetroChina and Jinling Hotel 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 Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Jinling Hotel.
Diversification Opportunities for PetroChina and Jinling Hotel
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between PetroChina and Jinling is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Jinling Hotel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinling Hotel Corp 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 Jinling Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinling Hotel Corp has no effect on the direction of PetroChina i.e., PetroChina and Jinling Hotel go up and down completely randomly.
Pair Corralation between PetroChina and Jinling Hotel
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.78 times more return on investment than Jinling Hotel. However, PetroChina Co Ltd is 1.28 times less risky than Jinling Hotel. It trades about 0.06 of its potential returns per unit of risk. Jinling Hotel Corp is currently generating about -0.01 per unit of risk. If you would invest 499.00 in PetroChina Co Ltd on August 30, 2024 and sell it today you would earn a total of 304.00 from holding PetroChina Co Ltd or generate 60.92% 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. Jinling Hotel Corp
Performance |
| Timeline |
| PetroChina |
| Jinling Hotel Corp |
PetroChina and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Jinling Hotel
The main advantage of trading using opposite PetroChina and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Jinling Hotel 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 Jinling Hotel will offset losses from the drop in Jinling Hotel's long position.| PetroChina vs. Guilin Seamild Foods | PetroChina vs. Great Sun Foods Co | PetroChina vs. Jiahe Foods Industry | PetroChina vs. Lander Sports Development |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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