Correlation Between PetroChina and Agricultural Bank
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By analyzing existing cross correlation between PetroChina Co Ltd and Agricultural Bank of, you can compare the effects of market volatilities on PetroChina and Agricultural Bank 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 Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Agricultural Bank.
Diversification Opportunities for PetroChina and Agricultural Bank
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between PetroChina and Agricultural is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank 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 Agricultural Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agricultural Bank has no effect on the direction of PetroChina i.e., PetroChina and Agricultural Bank go up and down completely randomly.
Pair Corralation between PetroChina and Agricultural Bank
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Agricultural Bank. In addition to that, PetroChina is 1.41 times more volatile than Agricultural Bank of. It trades about -0.01 of its total potential returns per unit of risk. Agricultural Bank of is currently generating about 0.11 per unit of volatility. If you would invest 448.00 in Agricultural Bank of on November 2, 2024 and sell it today you would earn a total of 68.00 from holding Agricultural Bank of or generate 15.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Agricultural Bank of
Performance |
| Timeline |
| PetroChina |
| Agricultural Bank |
PetroChina and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Agricultural Bank
The main advantage of trading using opposite PetroChina and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Agricultural Bank 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 Agricultural Bank will offset losses from the drop in Agricultural Bank's long position.| PetroChina vs. Tongyu Communication | PetroChina vs. China Mobile Limited | PetroChina vs. CICT Mobile Communication | PetroChina vs. Wintao Communications Co |
| Agricultural Bank vs. Anhui Transport Consulting | Agricultural Bank vs. Jiangsu Broadcasting Cable | Agricultural Bank vs. Jiangsu Yanghe Brewery | Agricultural Bank vs. China Sports Industry |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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