Correlation Between PetroChina and Advanced Micro
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By analyzing existing cross correlation between PetroChina Co Ltd and Advanced Micro Fabrication, you can compare the effects of market volatilities on PetroChina and Advanced Micro 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 Advanced Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Advanced Micro.
Diversification Opportunities for PetroChina and Advanced Micro
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Advanced is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Advanced Micro Fabrication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Micro Fabri 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 Advanced Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Micro Fabri has no effect on the direction of PetroChina i.e., PetroChina and Advanced Micro go up and down completely randomly.
Pair Corralation between PetroChina and Advanced Micro
Assuming the 90 days trading horizon PetroChina is expected to generate 1.79 times less return on investment than Advanced Micro. But when comparing it to its historical volatility, PetroChina Co Ltd is 1.56 times less risky than Advanced Micro. It trades about 0.06 of its potential returns per unit of risk. Advanced Micro Fabrication is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 10,135 in Advanced Micro Fabrication on August 26, 2024 and sell it today you would earn a total of 10,811 from holding Advanced Micro Fabrication or generate 106.67% 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. Advanced Micro Fabrication
Performance |
| Timeline |
| PetroChina |
| Advanced Micro Fabri |
PetroChina and Advanced Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Advanced Micro
The main advantage of trading using opposite PetroChina and Advanced Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Advanced Micro 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 Advanced Micro will offset losses from the drop in Advanced Micro's long position.| PetroChina vs. Shenzhen Clou Electronics | PetroChina vs. Hainan Airlines Co | PetroChina vs. Mango Excellent Media | PetroChina vs. Dalian Zeus Entertainment |
| Advanced Micro vs. Wuhan Yangtze Communication | Advanced Micro vs. Tongyu Communication | Advanced Micro vs. Youyou Foods Co | Advanced Micro vs. Allwin Telecommunication Co |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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