Correlation Between PetroChina and Anhui Transport
Specify exactly 2 symbols:
By analyzing existing cross correlation between PetroChina Co Ltd and Anhui Transport Consulting, you can compare the effects of market volatilities on PetroChina and Anhui Transport 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 Anhui Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Anhui Transport.
Diversification Opportunities for PetroChina and Anhui Transport
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between PetroChina and Anhui is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Anhui Transport Consulting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Transport Cons 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 Anhui Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Transport Cons has no effect on the direction of PetroChina i.e., PetroChina and Anhui Transport go up and down completely randomly.
Pair Corralation between PetroChina and Anhui Transport
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Anhui Transport. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 1.2 times less risky than Anhui Transport. The stock trades about -0.07 of its potential returns per unit of risk. The Anhui Transport Consulting is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,088 in Anhui Transport Consulting on September 3, 2024 and sell it today you would lose (105.00) from holding Anhui Transport Consulting or give up 9.65% 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. Anhui Transport Consulting
Performance |
| Timeline |
| PetroChina |
| Anhui Transport Cons |
PetroChina and Anhui Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Anhui Transport
The main advantage of trading using opposite PetroChina and Anhui Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Anhui Transport 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 Anhui Transport will offset losses from the drop in Anhui Transport's long position.| PetroChina vs. China Express Airlines | PetroChina vs. Xinhua Winshare Publishing | PetroChina vs. Jinhui Liquor Co | PetroChina vs. Beijing Kaiwen Education |
| Anhui Transport vs. Cultural Investment Holdings | Anhui Transport vs. Gome Telecom Equipment | Anhui Transport vs. Bus Online Co | Anhui Transport vs. Holitech Technology Co |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |