Correlation Between PetroChina and Guobo Electronics
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By analyzing existing cross correlation between PetroChina Co Ltd and Guobo Electronics Co, you can compare the effects of market volatilities on PetroChina and Guobo Electronics 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 Guobo Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Guobo Electronics.
Diversification Opportunities for PetroChina and Guobo Electronics
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PetroChina and Guobo is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Guobo Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guobo Electronics 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 Guobo Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guobo Electronics has no effect on the direction of PetroChina i.e., PetroChina and Guobo Electronics go up and down completely randomly.
Pair Corralation between PetroChina and Guobo Electronics
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.74 times more return on investment than Guobo Electronics. However, PetroChina Co Ltd is 1.36 times less risky than Guobo Electronics. It trades about 0.07 of its potential returns per unit of risk. Guobo Electronics Co is currently generating about -0.01 per unit of risk. If you would invest 506.00 in PetroChina Co Ltd on October 16, 2024 and sell it today you would earn a total of 381.00 from holding PetroChina Co Ltd or generate 75.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Guobo Electronics Co
Performance |
| Timeline |
| PetroChina |
| Guobo Electronics |
PetroChina and Guobo Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Guobo Electronics
The main advantage of trading using opposite PetroChina and Guobo Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Guobo Electronics 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 Guobo Electronics will offset losses from the drop in Guobo Electronics' long position.| PetroChina vs. Qingdao Foods Co | PetroChina vs. Hubeiyichang Transportation Group | PetroChina vs. Guangdong Wens Foodstuff | PetroChina vs. Youyou Foods Co |
| Guobo Electronics vs. Yankershop Food Co | Guobo Electronics vs. Jiangnan Mould Plastic | Guobo Electronics vs. Xinjiang Tianrun Dairy | Guobo Electronics vs. Great Sun Foods 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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