Correlation Between PetroChina and China Publishing
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By analyzing existing cross correlation between PetroChina Co Ltd and China Publishing Media, you can compare the effects of market volatilities on PetroChina and China Publishing 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 China Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and China Publishing.
Diversification Opportunities for PetroChina and China Publishing
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between PetroChina and China is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and China Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Publishing Media 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 China Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Publishing Media has no effect on the direction of PetroChina i.e., PetroChina and China Publishing go up and down completely randomly.
Pair Corralation between PetroChina and China Publishing
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.66 times more return on investment than China Publishing. However, PetroChina Co Ltd is 1.52 times less risky than China Publishing. It trades about 0.35 of its potential returns per unit of risk. China Publishing Media is currently generating about -0.23 per unit of risk. If you would invest 802.00 in PetroChina Co Ltd on September 27, 2024 and sell it today you would earn a total of 100.00 from holding PetroChina Co Ltd or generate 12.47% 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. China Publishing Media
Performance |
| Timeline |
| PetroChina |
| China Publishing Media |
PetroChina and China Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and China Publishing
The main advantage of trading using opposite PetroChina and China Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, China Publishing 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 China Publishing will offset losses from the drop in China Publishing's long position.| PetroChina vs. Zhejiang Kingland Pipeline | PetroChina vs. Huizhou Speed Wireless | PetroChina vs. Shaanxi Construction Machinery | PetroChina vs. Linktel Technologies Co |
| China Publishing vs. PetroChina Co Ltd | China Publishing vs. China Mobile Limited | China Publishing vs. CNOOC Limited | China Publishing 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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