Correlation Between PetroChina and Anhui Huaheng
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By analyzing existing cross correlation between PetroChina Co Ltd and Anhui Huaheng Biotechnology, you can compare the effects of market volatilities on PetroChina and Anhui Huaheng 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 Anhui Huaheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Anhui Huaheng.
Diversification Opportunities for PetroChina and Anhui Huaheng
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PetroChina and Anhui is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Anhui Huaheng Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huaheng Biotec 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 Anhui Huaheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huaheng Biotec has no effect on the direction of PetroChina i.e., PetroChina and Anhui Huaheng go up and down completely randomly.
Pair Corralation between PetroChina and Anhui Huaheng
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.67 times more return on investment than Anhui Huaheng. However, PetroChina Co Ltd is 1.48 times less risky than Anhui Huaheng. It trades about 0.06 of its potential returns per unit of risk. Anhui Huaheng Biotechnology is currently generating about -0.06 per unit of risk. If you would invest 500.00 in PetroChina Co Ltd on October 28, 2024 and sell it today you would earn a total of 322.00 from holding PetroChina Co Ltd or generate 64.4% 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. Anhui Huaheng Biotechnology
Performance |
| Timeline |
| PetroChina |
| Anhui Huaheng Biotec |
PetroChina and Anhui Huaheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Anhui Huaheng
The main advantage of trading using opposite PetroChina and Anhui Huaheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Anhui Huaheng 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 Anhui Huaheng will offset losses from the drop in Anhui Huaheng's long position.| PetroChina vs. Lontium Semiconductor Corp | PetroChina vs. Hubei Tech Semiconductors | PetroChina vs. CICC Fund Management | PetroChina vs. Chengdu Spaceon Electronics |
| Anhui Huaheng vs. StarPower Semiconductor | Anhui Huaheng vs. Giantec Semiconductor Corp | Anhui Huaheng vs. Puya Semiconductor Shanghai | Anhui Huaheng vs. Sportsoul 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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