Correlation Between PetroChina and Beijing Baolande
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By analyzing existing cross correlation between PetroChina Co Ltd and Beijing Baolande Software, you can compare the effects of market volatilities on PetroChina and Beijing Baolande 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 Beijing Baolande. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Beijing Baolande.
Diversification Opportunities for PetroChina and Beijing Baolande
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PetroChina and Beijing is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Beijing Baolande Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Baolande Software 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 Beijing Baolande. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Baolande Software has no effect on the direction of PetroChina i.e., PetroChina and Beijing Baolande go up and down completely randomly.
Pair Corralation between PetroChina and Beijing Baolande
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Beijing Baolande. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 2.34 times less risky than Beijing Baolande. The stock trades about -0.03 of its potential returns per unit of risk. The Beijing Baolande Software is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,926 in Beijing Baolande Software on October 26, 2024 and sell it today you would earn a total of 634.00 from holding Beijing Baolande Software or generate 32.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Beijing Baolande Software
Performance |
| Timeline |
| PetroChina |
| Beijing Baolande Software |
PetroChina and Beijing Baolande Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Beijing Baolande
The main advantage of trading using opposite PetroChina and Beijing Baolande positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Beijing Baolande 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 Beijing Baolande will offset losses from the drop in Beijing Baolande's long position.| PetroChina vs. Heilongjiang Transport Development | PetroChina vs. Unisplendour Corp | PetroChina vs. Strait Innovation Internet | PetroChina vs. Beijing Seeyon Internet |
| Beijing Baolande vs. Bank of China | Beijing Baolande vs. Kweichow Moutai Co | Beijing Baolande vs. PetroChina Co Ltd | Beijing Baolande vs. Bank of Communications |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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