Correlation Between PetroChina and Industrial Securities
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By analyzing existing cross correlation between PetroChina Co Ltd and Industrial Securities Co, you can compare the effects of market volatilities on PetroChina and Industrial 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 Industrial Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Industrial Securities.
Diversification Opportunities for PetroChina and Industrial Securities
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PetroChina and Industrial is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Industrial Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial 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 Industrial Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial Securities has no effect on the direction of PetroChina i.e., PetroChina and Industrial Securities go up and down completely randomly.
Pair Corralation between PetroChina and Industrial Securities
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.88 times more return on investment than Industrial Securities. However, PetroChina Co Ltd is 1.13 times less risky than Industrial Securities. It trades about 0.18 of its potential returns per unit of risk. Industrial Securities Co is currently generating about -0.08 per unit of risk. If you would invest 807.00 in PetroChina Co Ltd on September 14, 2024 and sell it today you would earn a total of 38.00 from holding PetroChina Co Ltd or generate 4.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Industrial Securities Co
Performance |
| Timeline |
| PetroChina |
| Industrial Securities |
PetroChina and Industrial Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Industrial Securities
The main advantage of trading using opposite PetroChina and Industrial Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Industrial 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 Industrial Securities will offset losses from the drop in Industrial Securities' long position.| PetroChina vs. Sportsoul Co Ltd | PetroChina vs. Dook Media Group | PetroChina vs. Focus Media Information | PetroChina vs. Wasu Media Holding |
| Industrial Securities vs. China Petroleum Chemical | Industrial Securities vs. PetroChina Co Ltd | Industrial Securities vs. China State Construction | Industrial Securities vs. China Railway Group |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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