Correlation Between PetroChina and Peoples Insurance
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By analyzing existing cross correlation between PetroChina Co Ltd and Peoples Insurance of, you can compare the effects of market volatilities on PetroChina and Peoples Insurance 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 Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Peoples Insurance.
Diversification Opportunities for PetroChina and Peoples Insurance
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between PetroChina and Peoples is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance 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 Peoples Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peoples Insurance has no effect on the direction of PetroChina i.e., PetroChina and Peoples Insurance go up and down completely randomly.
Pair Corralation between PetroChina and Peoples Insurance
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.72 times more return on investment than Peoples Insurance. However, PetroChina Co Ltd is 1.39 times less risky than Peoples Insurance. It trades about -0.01 of its potential returns per unit of risk. Peoples Insurance of is currently generating about -0.01 per unit of risk. If you would invest 837.00 in PetroChina Co Ltd on October 26, 2024 and sell it today you would lose (11.00) from holding PetroChina Co Ltd or give up 1.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Peoples Insurance of
Performance |
| Timeline |
| PetroChina |
| Peoples Insurance |
PetroChina and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Peoples Insurance
The main advantage of trading using opposite PetroChina and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Peoples Insurance 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 Peoples Insurance will offset losses from the drop in Peoples Insurance's long position.| PetroChina vs. Heilongjiang Transport Development | PetroChina vs. Unisplendour Corp | PetroChina vs. Strait Innovation Internet | PetroChina vs. Beijing Seeyon Internet |
| Peoples Insurance vs. BeiGene | Peoples Insurance vs. Kweichow Moutai Co | Peoples Insurance vs. Beijing Roborock Technology | Peoples Insurance vs. G bits Network Technology |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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