Correlation Between PetroChina and Yonghui Superstores
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By analyzing existing cross correlation between PetroChina Co Ltd and Yonghui Superstores Co, you can compare the effects of market volatilities on PetroChina and Yonghui Superstores 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 Yonghui Superstores. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Yonghui Superstores.
Diversification Opportunities for PetroChina and Yonghui Superstores
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Yonghui is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Yonghui Superstores Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yonghui Superstores 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 Yonghui Superstores. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yonghui Superstores has no effect on the direction of PetroChina i.e., PetroChina and Yonghui Superstores go up and down completely randomly.
Pair Corralation between PetroChina and Yonghui Superstores
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Yonghui Superstores. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 5.05 times less risky than Yonghui Superstores. The stock trades about -0.21 of its potential returns per unit of risk. The Yonghui Superstores Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 377.00 in Yonghui Superstores Co on August 25, 2024 and sell it today you would earn a total of 46.00 from holding Yonghui Superstores Co or generate 12.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Yonghui Superstores Co
Performance |
| Timeline |
| PetroChina |
| Yonghui Superstores |
PetroChina and Yonghui Superstores Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Yonghui Superstores
The main advantage of trading using opposite PetroChina and Yonghui Superstores positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Yonghui Superstores 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 Yonghui Superstores will offset losses from the drop in Yonghui Superstores' long position.| PetroChina vs. Zhejiang Kingland Pipeline | PetroChina vs. COL Digital Publishing | PetroChina vs. Suzhou Novoprotein Scientific | PetroChina vs. Xiangyang Automobile Bearing |
| Yonghui Superstores vs. Industrial and Commercial | Yonghui Superstores vs. Agricultural Bank of | Yonghui Superstores vs. China Construction Bank | Yonghui Superstores vs. Bank of China |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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