Correlation Between PetroChina and Ningbo Tip
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By analyzing existing cross correlation between PetroChina Co Ltd and Ningbo Tip Rubber, you can compare the effects of market volatilities on PetroChina and Ningbo Tip 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 Ningbo Tip. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Ningbo Tip.
Diversification Opportunities for PetroChina and Ningbo Tip
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between PetroChina and Ningbo is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Ningbo Tip Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Tip Rubber 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 Ningbo Tip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Tip Rubber has no effect on the direction of PetroChina i.e., PetroChina and Ningbo Tip go up and down completely randomly.
Pair Corralation between PetroChina and Ningbo Tip
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.66 times more return on investment than Ningbo Tip. However, PetroChina Co Ltd is 1.51 times less risky than Ningbo Tip. It trades about 0.06 of its potential returns per unit of risk. Ningbo Tip Rubber is currently generating about 0.0 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. Ningbo Tip Rubber
Performance |
| Timeline |
| PetroChina |
| Ningbo Tip Rubber |
PetroChina and Ningbo Tip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Ningbo Tip
The main advantage of trading using opposite PetroChina and Ningbo Tip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Ningbo Tip 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 Ningbo Tip will offset losses from the drop in Ningbo Tip's long position.| PetroChina vs. China Express Airlines | PetroChina vs. Xinhua Winshare Publishing | PetroChina vs. Jinhui Liquor Co | PetroChina vs. Beijing Kaiwen Education |
| Ningbo Tip vs. PetroChina Co Ltd | Ningbo Tip vs. China Mobile Limited | Ningbo Tip vs. Industrial and Commercial | Ningbo Tip 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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