Correlation Between PetroChina and Juewei Food
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By analyzing existing cross correlation between PetroChina Co Ltd and Juewei Food Co, you can compare the effects of market volatilities on PetroChina and Juewei Food 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 Juewei Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Juewei Food.
Diversification Opportunities for PetroChina and Juewei Food
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Juewei is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Juewei Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juewei Food 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 Juewei Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juewei Food has no effect on the direction of PetroChina i.e., PetroChina and Juewei Food go up and down completely randomly.
Pair Corralation between PetroChina and Juewei Food
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.74 times more return on investment than Juewei Food. However, PetroChina Co Ltd is 1.35 times less risky than Juewei Food. It trades about 0.01 of its potential returns per unit of risk. Juewei Food Co is currently generating about -0.06 per unit of risk. If you would invest 778.00 in PetroChina Co Ltd on August 26, 2024 and sell it today you would earn a total of 23.00 from holding PetroChina Co Ltd or generate 2.96% 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. Juewei Food Co
Performance |
| Timeline |
| PetroChina |
| Juewei Food |
PetroChina and Juewei Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Juewei Food
The main advantage of trading using opposite PetroChina and Juewei Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Juewei Food 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 Juewei Food will offset losses from the drop in Juewei Food's long position.| PetroChina vs. Zhejiang Kingland Pipeline | PetroChina vs. COL Digital Publishing | PetroChina vs. Suzhou Novoprotein Scientific | PetroChina vs. Xiangyang Automobile Bearing |
| Juewei Food vs. China Petroleum Chemical | Juewei Food vs. PetroChina Co Ltd | Juewei Food vs. China State Construction | Juewei Food vs. China Railway Group |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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