Correlation Between PetroChina and Fuda Alloy
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By analyzing existing cross correlation between PetroChina Co Ltd and Fuda Alloy Materials, you can compare the effects of market volatilities on PetroChina and Fuda Alloy 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 Fuda Alloy. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Fuda Alloy.
Diversification Opportunities for PetroChina and Fuda Alloy
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Fuda is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Fuda Alloy Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuda Alloy Materials 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 Fuda Alloy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuda Alloy Materials has no effect on the direction of PetroChina i.e., PetroChina and Fuda Alloy go up and down completely randomly.
Pair Corralation between PetroChina and Fuda Alloy
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Fuda Alloy. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 2.59 times less risky than Fuda Alloy. The stock trades about -0.06 of its potential returns per unit of risk. The Fuda Alloy Materials is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,262 in Fuda Alloy Materials on September 5, 2024 and sell it today you would earn a total of 90.00 from holding Fuda Alloy Materials or generate 7.13% 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. Fuda Alloy Materials
Performance |
| Timeline |
| PetroChina |
| Fuda Alloy Materials |
PetroChina and Fuda Alloy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Fuda Alloy
The main advantage of trading using opposite PetroChina and Fuda Alloy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Fuda Alloy 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 Fuda Alloy will offset losses from the drop in Fuda Alloy's long position.| PetroChina vs. Aofu Environmental Technology | PetroChina vs. Bengang Steel Plates | PetroChina vs. Guangzhou Jointas Chemical | PetroChina vs. Shenyang Chemical Industry |
| Fuda Alloy vs. Biwin Storage Technology | Fuda Alloy vs. PetroChina Co Ltd | Fuda Alloy vs. Industrial and Commercial | Fuda Alloy vs. China Construction Bank |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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