Correlation Between PetroChina and Northern United
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By analyzing existing cross correlation between PetroChina Co Ltd and Northern United Publishing, you can compare the effects of market volatilities on PetroChina and Northern United 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 Northern United. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Northern United.
Diversification Opportunities for PetroChina and Northern United
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PetroChina and Northern is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Northern United Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern United Publ 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 Northern United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern United Publ has no effect on the direction of PetroChina i.e., PetroChina and Northern United go up and down completely randomly.
Pair Corralation between PetroChina and Northern United
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.44 times more return on investment than Northern United. However, PetroChina Co Ltd is 2.29 times less risky than Northern United. It trades about 0.33 of its potential returns per unit of risk. Northern United Publishing is currently generating about -0.06 per unit of risk. If you would invest 803.00 in PetroChina Co Ltd on September 28, 2024 and sell it today you would earn a total of 94.00 from holding PetroChina Co Ltd or generate 11.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Northern United Publishing
Performance |
| Timeline |
| PetroChina |
| Northern United Publ |
PetroChina and Northern United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Northern United
The main advantage of trading using opposite PetroChina and Northern United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Northern United 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 Northern United will offset losses from the drop in Northern United's long position.| PetroChina vs. Ping An Insurance | PetroChina vs. Qilu Bank Co | PetroChina vs. China Construction Bank | PetroChina vs. Bank of Suzhou |
| Northern United vs. PetroChina Co Ltd | Northern United vs. China Mobile Limited | Northern United vs. CNOOC Limited | Northern United 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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