Correlation Between PetroChina and Jiangsu Xinri
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By analyzing existing cross correlation between PetroChina Co Ltd and Jiangsu Xinri E Vehicle, you can compare the effects of market volatilities on PetroChina and Jiangsu Xinri 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 Jiangsu Xinri. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Jiangsu Xinri.
Diversification Opportunities for PetroChina and Jiangsu Xinri
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between PetroChina and Jiangsu is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Jiangsu Xinri E Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinri E 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 Jiangsu Xinri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinri E has no effect on the direction of PetroChina i.e., PetroChina and Jiangsu Xinri go up and down completely randomly.
Pair Corralation between PetroChina and Jiangsu Xinri
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.75 times more return on investment than Jiangsu Xinri. However, PetroChina Co Ltd is 1.33 times less risky than Jiangsu Xinri. It trades about 0.06 of its potential returns per unit of risk. Jiangsu Xinri E Vehicle is currently generating about -0.03 per unit of risk. If you would invest 495.00 in PetroChina Co Ltd on September 3, 2024 and sell it today you would earn a total of 309.00 from holding PetroChina Co Ltd or generate 62.42% 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. Jiangsu Xinri E Vehicle
Performance |
| Timeline |
| PetroChina |
| Jiangsu Xinri E |
PetroChina and Jiangsu Xinri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Jiangsu Xinri
The main advantage of trading using opposite PetroChina and Jiangsu Xinri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Jiangsu Xinri 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 Jiangsu Xinri will offset losses from the drop in Jiangsu Xinri's long position.| PetroChina vs. China Express Airlines | PetroChina vs. Xinhua Winshare Publishing | PetroChina vs. Jinhui Liquor Co | PetroChina vs. Beijing Kaiwen Education |
| Jiangsu Xinri vs. PetroChina Co Ltd | Jiangsu Xinri vs. China Mobile Limited | Jiangsu Xinri vs. Industrial and Commercial | Jiangsu Xinri vs. China Life Insurance |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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