Correlation Between PetroChina and Nancal Energy
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By analyzing existing cross correlation between PetroChina Co Ltd and Nancal Energy Saving Tech, you can compare the effects of market volatilities on PetroChina and Nancal Energy 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 Nancal Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Nancal Energy.
Diversification Opportunities for PetroChina and Nancal Energy
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between PetroChina and Nancal is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Nancal Energy Saving Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nancal Energy Saving 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 Nancal Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nancal Energy Saving has no effect on the direction of PetroChina i.e., PetroChina and Nancal Energy go up and down completely randomly.
Pair Corralation between PetroChina and Nancal Energy
Assuming the 90 days trading horizon PetroChina is expected to generate 1.01 times less return on investment than Nancal Energy. But when comparing it to its historical volatility, PetroChina Co Ltd is 1.72 times less risky than Nancal Energy. It trades about 0.07 of its potential returns per unit of risk. Nancal Energy Saving Tech is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,607 in Nancal Energy Saving Tech on September 12, 2024 and sell it today you would earn a total of 1,087 from holding Nancal Energy Saving Tech or generate 41.7% 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. Nancal Energy Saving Tech
Performance |
| Timeline |
| PetroChina |
| Nancal Energy Saving |
PetroChina and Nancal Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Nancal Energy
The main advantage of trading using opposite PetroChina and Nancal Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Nancal Energy 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 Nancal Energy will offset losses from the drop in Nancal Energy's long position.| PetroChina vs. Digital China Information | PetroChina vs. DO Home Collection | PetroChina vs. Tongding Interconnection Information | PetroChina vs. Guangzhou Dongfang Hotel |
| Nancal Energy vs. Agricultural Bank of | Nancal Energy vs. Industrial and Commercial | Nancal Energy vs. Bank of China | Nancal Energy vs. PetroChina Co Ltd |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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