Correlation Between PetroChina and Jiangsu GDK
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By analyzing existing cross correlation between PetroChina Co Ltd and Jiangsu GDK Biotechnology, you can compare the effects of market volatilities on PetroChina and Jiangsu GDK 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 Jiangsu GDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Jiangsu GDK.
Diversification Opportunities for PetroChina and Jiangsu GDK
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between PetroChina and Jiangsu is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Jiangsu GDK Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu GDK Biotechnology 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 Jiangsu GDK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu GDK Biotechnology has no effect on the direction of PetroChina i.e., PetroChina and Jiangsu GDK go up and down completely randomly.
Pair Corralation between PetroChina and Jiangsu GDK
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Jiangsu GDK. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 1.99 times less risky than Jiangsu GDK. The stock trades about -0.06 of its potential returns per unit of risk. The Jiangsu GDK Biotechnology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,808 in Jiangsu GDK Biotechnology on September 3, 2024 and sell it today you would lose (140.00) from holding Jiangsu GDK Biotechnology or give up 7.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Jiangsu GDK Biotechnology
Performance |
| Timeline |
| PetroChina |
| Jiangsu GDK Biotechnology |
PetroChina and Jiangsu GDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Jiangsu GDK
The main advantage of trading using opposite PetroChina and Jiangsu GDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Jiangsu GDK 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 Jiangsu GDK will offset losses from the drop in Jiangsu GDK's long position.| PetroChina vs. China Express Airlines | PetroChina vs. Xinhua Winshare Publishing | PetroChina vs. Jinhui Liquor Co | PetroChina vs. Beijing Kaiwen Education |
| Jiangsu GDK vs. Chengdu Kanghua Biological | Jiangsu GDK vs. Beijing Wantai Biological | Jiangsu GDK vs. Suzhou Novoprotein Scientific | Jiangsu GDK vs. Aluminum Corp of |
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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