Correlation Between PetroChina and Yonyou Auto
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By analyzing existing cross correlation between PetroChina Co Ltd and Yonyou Auto Information, you can compare the effects of market volatilities on PetroChina and Yonyou Auto 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 Yonyou Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Yonyou Auto.
Diversification Opportunities for PetroChina and Yonyou Auto
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between PetroChina and Yonyou is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Yonyou Auto Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yonyou Auto Information 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 Yonyou Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yonyou Auto Information has no effect on the direction of PetroChina i.e., PetroChina and Yonyou Auto go up and down completely randomly.
Pair Corralation between PetroChina and Yonyou Auto
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.74 times more return on investment than Yonyou Auto. However, PetroChina Co Ltd is 1.36 times less risky than Yonyou Auto. It trades about 0.02 of its potential returns per unit of risk. Yonyou Auto Information is currently generating about -0.03 per unit of risk. If you would invest 764.00 in PetroChina Co Ltd on September 1, 2024 and sell it today you would earn a total of 40.00 from holding PetroChina Co Ltd or generate 5.24% 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. Yonyou Auto Information
Performance |
| Timeline |
| PetroChina |
| Yonyou Auto Information |
PetroChina and Yonyou Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Yonyou Auto
The main advantage of trading using opposite PetroChina and Yonyou Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Yonyou Auto 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 Yonyou Auto will offset losses from the drop in Yonyou Auto's long position.| PetroChina vs. Dongjiang Environmental Co | PetroChina vs. Tonghua Grape Wine | PetroChina vs. Dezhan HealthCare Co | PetroChina vs. Guangdong Liantai Environmental |
| Yonyou Auto vs. Ningbo Kangqiang Electronics | Yonyou Auto vs. Wuhan Yangtze Communication | Yonyou Auto vs. CSSC Offshore Marine | Yonyou Auto vs. Zhejiang JIULI Hi tech |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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