Correlation Between PetroChina and Jiahe Foods
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By analyzing existing cross correlation between PetroChina Co Ltd and Jiahe Foods Industry, you can compare the effects of market volatilities on PetroChina and Jiahe Foods 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 Jiahe Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Jiahe Foods.
Diversification Opportunities for PetroChina and Jiahe Foods
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PetroChina and Jiahe is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Jiahe Foods Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiahe Foods Industry 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 Jiahe Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiahe Foods Industry has no effect on the direction of PetroChina i.e., PetroChina and Jiahe Foods go up and down completely randomly.
Pair Corralation between PetroChina and Jiahe Foods
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.71 times more return on investment than Jiahe Foods. However, PetroChina Co Ltd is 1.41 times less risky than Jiahe Foods. It trades about 0.03 of its potential returns per unit of risk. Jiahe Foods Industry is currently generating about -0.02 per unit of risk. If you would invest 756.00 in PetroChina Co Ltd on September 12, 2024 and sell it today you would earn a total of 80.00 from holding PetroChina Co Ltd or generate 10.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Jiahe Foods Industry
Performance |
| Timeline |
| PetroChina |
| Jiahe Foods Industry |
PetroChina and Jiahe Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Jiahe Foods
The main advantage of trading using opposite PetroChina and Jiahe Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Jiahe Foods 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 Jiahe Foods will offset losses from the drop in Jiahe Foods' long position.| PetroChina vs. Digital China Information | PetroChina vs. DO Home Collection | PetroChina vs. Tongding Interconnection Information | PetroChina vs. Guangzhou Dongfang Hotel |
| Jiahe Foods vs. China Petroleum Chemical | Jiahe Foods vs. PetroChina Co Ltd | Jiahe Foods vs. China State Construction | Jiahe Foods 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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