Correlation Between PetroChina and Jason Furniture(Hangzh

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Can any of the company-specific risk be diversified away by investing in both PetroChina and Jason Furniture(Hangzh at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining PetroChina and Jason Furniture(Hangzh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PetroChina Co Ltd and Jason Furniture, you can compare the effects of market volatilities on PetroChina and Jason Furniture(Hangzh 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 Jason Furniture(Hangzh. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Jason Furniture(Hangzh.

Diversification Opportunities for PetroChina and Jason Furniture(Hangzh

-0.35
  Correlation Coefficient

Very good diversification

The 3 months correlation between PetroChina and Jason is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Jason Furniture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jason Furniture(Hangzh 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 Jason Furniture(Hangzh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jason Furniture(Hangzh has no effect on the direction of PetroChina i.e., PetroChina and Jason Furniture(Hangzh go up and down completely randomly.

Pair Corralation between PetroChina and Jason Furniture(Hangzh

Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Jason Furniture(Hangzh. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 1.26 times less risky than Jason Furniture(Hangzh. The stock trades about -0.21 of its potential returns per unit of risk. The Jason Furniture is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  2,865  in Jason Furniture on November 4, 2024 and sell it today you would earn a total of  63.00  from holding Jason Furniture or generate 2.2% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

PetroChina Co Ltd  vs.  Jason Furniture

 Performance 
       Timeline  
PetroChina 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in PetroChina Co Ltd are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, PetroChina is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Jason Furniture(Hangzh 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Jason Furniture has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

PetroChina and Jason Furniture(Hangzh Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with PetroChina and Jason Furniture(Hangzh

The main advantage of trading using opposite PetroChina and Jason Furniture(Hangzh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Jason Furniture(Hangzh 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 Jason Furniture(Hangzh will offset losses from the drop in Jason Furniture(Hangzh's long position.
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The idea behind PetroChina Co Ltd and Jason Furniture pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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