Correlation Between PetroChina and Nanjing Medlander
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By analyzing existing cross correlation between PetroChina Co Ltd and Nanjing Medlander Medical, you can compare the effects of market volatilities on PetroChina and Nanjing Medlander 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 Nanjing Medlander. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Nanjing Medlander.
Diversification Opportunities for PetroChina and Nanjing Medlander
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between PetroChina and Nanjing is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Nanjing Medlander Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Medlander Medical 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 Nanjing Medlander. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Medlander Medical has no effect on the direction of PetroChina i.e., PetroChina and Nanjing Medlander go up and down completely randomly.
Pair Corralation between PetroChina and Nanjing Medlander
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.65 times more return on investment than Nanjing Medlander. However, PetroChina Co Ltd is 1.53 times less risky than Nanjing Medlander. It trades about 0.03 of its potential returns per unit of risk. Nanjing Medlander Medical is currently generating about -0.02 per unit of risk. If you would invest 720.00 in PetroChina Co Ltd on August 29, 2024 and sell it today you would earn a total of 82.00 from holding PetroChina Co Ltd or generate 11.39% 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. Nanjing Medlander Medical
Performance |
| Timeline |
| PetroChina |
| Nanjing Medlander Medical |
PetroChina and Nanjing Medlander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Nanjing Medlander
The main advantage of trading using opposite PetroChina and Nanjing Medlander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Nanjing Medlander 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 Nanjing Medlander will offset losses from the drop in Nanjing Medlander's long position.| PetroChina vs. Guilin Seamild Foods | PetroChina vs. Great Sun Foods Co | PetroChina vs. Jiahe Foods Industry | PetroChina vs. Lander Sports Development |
| Nanjing Medlander vs. Industrial and Commercial | Nanjing Medlander vs. China Construction Bank | Nanjing Medlander vs. Agricultural Bank of | Nanjing Medlander vs. Bank of China |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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