Correlation Between PetroChina and Cinda Securities
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By analyzing existing cross correlation between PetroChina Co Ltd and Cinda Securities Co, you can compare the effects of market volatilities on PetroChina and Cinda Securities 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 Cinda Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Cinda Securities.
Diversification Opportunities for PetroChina and Cinda Securities
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PetroChina and Cinda is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Cinda Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cinda Securities 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 Cinda Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cinda Securities has no effect on the direction of PetroChina i.e., PetroChina and Cinda Securities go up and down completely randomly.
Pair Corralation between PetroChina and Cinda Securities
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.55 times more return on investment than Cinda Securities. However, PetroChina Co Ltd is 1.81 times less risky than Cinda Securities. It trades about 0.13 of its potential returns per unit of risk. Cinda Securities Co is currently generating about -0.13 per unit of risk. If you would invest 809.00 in PetroChina Co Ltd on September 12, 2024 and sell it today you would earn a total of 27.00 from holding PetroChina Co Ltd or generate 3.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Cinda Securities Co
Performance |
| Timeline |
| PetroChina |
| Cinda Securities |
PetroChina and Cinda Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Cinda Securities
The main advantage of trading using opposite PetroChina and Cinda Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Cinda Securities 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 Cinda Securities will offset losses from the drop in Cinda Securities' long position.| PetroChina vs. Digital China Information | PetroChina vs. DO Home Collection | PetroChina vs. Tongding Interconnection Information | PetroChina vs. Guangzhou Dongfang Hotel |
| Cinda Securities vs. China Petroleum Chemical | Cinda Securities vs. PetroChina Co Ltd | Cinda Securities vs. China Mobile Limited | Cinda Securities vs. Industrial and Commercial |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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