Correlation Between PetroChina and Heilongjiang Transport
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By analyzing existing cross correlation between PetroChina Co Ltd and Heilongjiang Transport Development, you can compare the effects of market volatilities on PetroChina and Heilongjiang Transport 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 Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Heilongjiang Transport.
Diversification Opportunities for PetroChina and Heilongjiang Transport
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Heilongjiang is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport 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 Heilongjiang Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Transport has no effect on the direction of PetroChina i.e., PetroChina and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between PetroChina and Heilongjiang Transport
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Heilongjiang Transport. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 1.3 times less risky than Heilongjiang Transport. The stock trades about -0.03 of its potential returns per unit of risk. The Heilongjiang Transport Development is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 370.00 in Heilongjiang Transport Development on October 26, 2024 and sell it today you would lose (35.00) from holding Heilongjiang Transport Development or give up 9.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Heilongjiang Transport Develop
Performance |
| Timeline |
| PetroChina |
| Heilongjiang Transport |
PetroChina and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Heilongjiang Transport
The main advantage of trading using opposite PetroChina and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Heilongjiang Transport 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 Heilongjiang Transport will offset losses from the drop in Heilongjiang Transport's long position.| PetroChina vs. Heilongjiang Transport Development | PetroChina vs. Unisplendour Corp | PetroChina vs. Strait Innovation Internet | PetroChina vs. Beijing Seeyon Internet |
| Heilongjiang Transport vs. PetroChina Co Ltd | Heilongjiang Transport vs. China Mobile Limited | Heilongjiang Transport vs. CNOOC Limited | Heilongjiang Transport 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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