Correlation Between PetroChina and Sinocat Environmental
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By analyzing existing cross correlation between PetroChina Co Ltd and Sinocat Environmental Technology, you can compare the effects of market volatilities on PetroChina and Sinocat Environmental 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 Sinocat Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Sinocat Environmental.
Diversification Opportunities for PetroChina and Sinocat Environmental
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between PetroChina and Sinocat is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Sinocat Environmental Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinocat Environmental 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 Sinocat Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinocat Environmental has no effect on the direction of PetroChina i.e., PetroChina and Sinocat Environmental go up and down completely randomly.
Pair Corralation between PetroChina and Sinocat Environmental
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Sinocat Environmental. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 4.19 times less risky than Sinocat Environmental. The stock trades about -0.11 of its potential returns per unit of risk. The Sinocat Environmental Technology is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 1,516 in Sinocat Environmental Technology on September 3, 2024 and sell it today you would earn a total of 469.00 from holding Sinocat Environmental Technology or generate 30.94% 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. Sinocat Environmental Technolo
Performance |
| Timeline |
| PetroChina |
| Sinocat Environmental |
PetroChina and Sinocat Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Sinocat Environmental
The main advantage of trading using opposite PetroChina and Sinocat Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Sinocat Environmental 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 Sinocat Environmental will offset losses from the drop in Sinocat Environmental's long position.| PetroChina vs. China Express Airlines | PetroChina vs. Xinhua Winshare Publishing | PetroChina vs. Jinhui Liquor Co | PetroChina vs. Beijing Kaiwen Education |
| Sinocat Environmental vs. PetroChina Co Ltd | Sinocat Environmental vs. China Mobile Limited | Sinocat Environmental vs. Industrial and Commercial | Sinocat Environmental vs. China Life Insurance |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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