Correlation Between PetroChina and Sinocat Environmental
Specify exactly 2 symbols:
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
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between PetroChina and Sinocat is -0.13. 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 1.45 times less risky than Sinocat Environmental. The stock trades about -0.21 of its potential returns per unit of risk. The Sinocat Environmental Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,614 in Sinocat Environmental Technology on November 4, 2024 and sell it today you would earn a total of 13.00 from holding Sinocat Environmental Technology or generate 0.81% 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. Anhui Deli Household | PetroChina vs. Liaoning Chengda Biotechnology | PetroChina vs. Beijing Baolande Software | PetroChina vs. Anhui Huaheng Biotechnology |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |