Correlation Between PetroChina and Nexchip Semiconductor
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By analyzing existing cross correlation between PetroChina Co Ltd and Nexchip Semiconductor Corp, you can compare the effects of market volatilities on PetroChina and Nexchip Semiconductor 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 Nexchip Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Nexchip Semiconductor.
Diversification Opportunities for PetroChina and Nexchip Semiconductor
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Nexchip is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Nexchip Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexchip Semiconductor 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 Nexchip Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexchip Semiconductor has no effect on the direction of PetroChina i.e., PetroChina and Nexchip Semiconductor go up and down completely randomly.
Pair Corralation between PetroChina and Nexchip Semiconductor
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Nexchip Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 4.67 times less risky than Nexchip Semiconductor. The stock trades about -0.21 of its potential returns per unit of risk. The Nexchip Semiconductor Corp is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,105 in Nexchip Semiconductor Corp on August 25, 2024 and sell it today you would earn a total of 339.00 from holding Nexchip Semiconductor Corp or generate 16.1% 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. Nexchip Semiconductor Corp
Performance |
| Timeline |
| PetroChina |
| Nexchip Semiconductor |
PetroChina and Nexchip Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Nexchip Semiconductor
The main advantage of trading using opposite PetroChina and Nexchip Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Nexchip Semiconductor 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 Nexchip Semiconductor will offset losses from the drop in Nexchip Semiconductor's long position.| PetroChina vs. Zhejiang Kingland Pipeline | PetroChina vs. COL Digital Publishing | PetroChina vs. Suzhou Novoprotein Scientific | PetroChina vs. Xiangyang Automobile Bearing |
| Nexchip Semiconductor vs. Lutian Machinery Co | Nexchip Semiconductor vs. China Longyuan Power | Nexchip Semiconductor vs. Changshu Tongrun Auto | Nexchip Semiconductor 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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