Correlation Between PetroChina and Sichuan Hebang
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By analyzing existing cross correlation between PetroChina Co Ltd and Sichuan Hebang Biotechnology, you can compare the effects of market volatilities on PetroChina and Sichuan Hebang 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 Sichuan Hebang. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Sichuan Hebang.
Diversification Opportunities for PetroChina and Sichuan Hebang
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between PetroChina and Sichuan is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Sichuan Hebang Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Hebang Biote 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 Sichuan Hebang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Hebang Biote has no effect on the direction of PetroChina i.e., PetroChina and Sichuan Hebang go up and down completely randomly.
Pair Corralation between PetroChina and Sichuan Hebang
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 1.06 times more return on investment than Sichuan Hebang. However, PetroChina is 1.06 times more volatile than Sichuan Hebang Biotechnology. It trades about 0.04 of its potential returns per unit of risk. Sichuan Hebang Biotechnology is currently generating about -0.01 per unit of risk. If you would invest 686.00 in PetroChina Co Ltd on September 4, 2024 and sell it today you would earn a total of 124.00 from holding PetroChina Co Ltd or generate 18.08% 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. Sichuan Hebang Biotechnology
Performance |
| Timeline |
| PetroChina |
| Sichuan Hebang Biote |
PetroChina and Sichuan Hebang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Sichuan Hebang
The main advantage of trading using opposite PetroChina and Sichuan Hebang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Sichuan Hebang 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 Sichuan Hebang will offset losses from the drop in Sichuan Hebang's long position.| PetroChina vs. Sichuan Hebang Biotechnology | PetroChina vs. Guangdong Marubi Biotechnology | PetroChina vs. Shandong Sanyuan Biotechnology | PetroChina vs. Bloomage Biotechnology Corp |
| Sichuan Hebang vs. Anji Foodstuff Co | Sichuan Hebang vs. Muyuan Foodstuff Co | Sichuan Hebang vs. Hainan Mining Co | Sichuan Hebang vs. Guangdong Qunxing Toys |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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