Correlation Between PetroChina and Servyou Software
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By analyzing existing cross correlation between PetroChina Co Ltd and Servyou Software Group, you can compare the effects of market volatilities on PetroChina and Servyou Software 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 Servyou Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Servyou Software.
Diversification Opportunities for PetroChina and Servyou Software
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Servyou is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Servyou Software Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Servyou Software 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 Servyou Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Servyou Software has no effect on the direction of PetroChina i.e., PetroChina and Servyou Software go up and down completely randomly.
Pair Corralation between PetroChina and Servyou Software
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Servyou Software. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 1.92 times less risky than Servyou Software. The stock trades about -0.08 of its potential returns per unit of risk. The Servyou Software Group is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,215 in Servyou Software Group on August 31, 2024 and sell it today you would earn a total of 893.00 from holding Servyou Software Group or generate 40.32% 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. Servyou Software Group
Performance |
| Timeline |
| PetroChina |
| Servyou Software |
PetroChina and Servyou Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Servyou Software
The main advantage of trading using opposite PetroChina and Servyou Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Servyou Software 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 Servyou Software will offset losses from the drop in Servyou Software's long position.| PetroChina vs. Zhejiang Kingland Pipeline | PetroChina vs. Gansu Jiu Steel | PetroChina vs. Ming Yang Smart | PetroChina vs. Aba Chemicals Corp |
| Servyou Software vs. Kweichow Moutai Co | Servyou Software vs. NAURA Technology Group | Servyou Software vs. APT Medical | Servyou Software vs. Contemporary Amperex Technology |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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