Correlation Between PetroChina and Xiamen Goldenhome
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By analyzing existing cross correlation between PetroChina Co Ltd and Xiamen Goldenhome Co, you can compare the effects of market volatilities on PetroChina and Xiamen Goldenhome 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 Xiamen Goldenhome. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Xiamen Goldenhome.
Diversification Opportunities for PetroChina and Xiamen Goldenhome
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between PetroChina and Xiamen is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Xiamen Goldenhome Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Goldenhome 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 Xiamen Goldenhome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Goldenhome has no effect on the direction of PetroChina i.e., PetroChina and Xiamen Goldenhome go up and down completely randomly.
Pair Corralation between PetroChina and Xiamen Goldenhome
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.78 times more return on investment than Xiamen Goldenhome. However, PetroChina Co Ltd is 1.28 times less risky than Xiamen Goldenhome. It trades about -0.18 of its potential returns per unit of risk. Xiamen Goldenhome Co is currently generating about -0.15 per unit of risk. If you would invest 878.00 in PetroChina Co Ltd on October 25, 2024 and sell it today you would lose (55.00) from holding PetroChina Co Ltd or give up 6.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Xiamen Goldenhome Co
Performance |
| Timeline |
| PetroChina |
| Xiamen Goldenhome |
PetroChina and Xiamen Goldenhome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Xiamen Goldenhome
The main advantage of trading using opposite PetroChina and Xiamen Goldenhome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Xiamen Goldenhome 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 Xiamen Goldenhome will offset losses from the drop in Xiamen Goldenhome's long position.| PetroChina vs. Anji Foodstuff Co | PetroChina vs. Puya Semiconductor Shanghai | PetroChina vs. Great Sun Foods Co | PetroChina vs. GRINM Semiconductor Materials |
| Xiamen Goldenhome vs. PetroChina Co Ltd | Xiamen Goldenhome vs. Gansu Jiu Steel | Xiamen Goldenhome vs. Ming Yang Smart | Xiamen Goldenhome vs. Aba Chemicals Corp |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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