Correlation Between PetroChina and Fujian Anjoy
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By analyzing existing cross correlation between PetroChina Co Ltd and Fujian Anjoy Foods, you can compare the effects of market volatilities on PetroChina and Fujian Anjoy 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 Fujian Anjoy. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Fujian Anjoy.
Diversification Opportunities for PetroChina and Fujian Anjoy
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PetroChina and Fujian is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Fujian Anjoy Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Anjoy Foods 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 Fujian Anjoy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Anjoy Foods has no effect on the direction of PetroChina i.e., PetroChina and Fujian Anjoy go up and down completely randomly.
Pair Corralation between PetroChina and Fujian Anjoy
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.48 times more return on investment than Fujian Anjoy. However, PetroChina Co Ltd is 2.08 times less risky than Fujian Anjoy. It trades about 0.22 of its potential returns per unit of risk. Fujian Anjoy Foods is currently generating about -0.05 per unit of risk. If you would invest 800.00 in PetroChina Co Ltd on September 13, 2024 and sell it today you would earn a total of 45.00 from holding PetroChina Co Ltd or generate 5.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Fujian Anjoy Foods
Performance |
| Timeline |
| PetroChina |
| Fujian Anjoy Foods |
PetroChina and Fujian Anjoy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Fujian Anjoy
The main advantage of trading using opposite PetroChina and Fujian Anjoy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Fujian Anjoy 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 Fujian Anjoy will offset losses from the drop in Fujian Anjoy's long position.| PetroChina vs. Ningxia Building Materials | PetroChina vs. Chongqing Sulian Plastic | PetroChina vs. Guangzhou Tinci Materials | PetroChina vs. Tianjin Pengling Rubber |
| Fujian Anjoy vs. Nanjing Putian Telecommunications | Fujian Anjoy vs. Tianjin Realty Development | Fujian Anjoy vs. Kangyue Technology Co | Fujian Anjoy vs. Shenzhen Hifuture Electric |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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