Correlation Between PetroChina and Liaoning Chengda
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By analyzing existing cross correlation between PetroChina Co Ltd and Liaoning Chengda Biotechnology, you can compare the effects of market volatilities on PetroChina and Liaoning Chengda 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 Liaoning Chengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Liaoning Chengda.
Diversification Opportunities for PetroChina and Liaoning Chengda
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PetroChina and Liaoning is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Liaoning Chengda Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liaoning Chengda Bio 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 Liaoning Chengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liaoning Chengda Bio has no effect on the direction of PetroChina i.e., PetroChina and Liaoning Chengda go up and down completely randomly.
Pair Corralation between PetroChina and Liaoning Chengda
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Liaoning Chengda. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 1.02 times less risky than Liaoning Chengda. The stock trades about -0.06 of its potential returns per unit of risk. The Liaoning Chengda Biotechnology is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,687 in Liaoning Chengda Biotechnology on September 3, 2024 and sell it today you would earn a total of 45.00 from holding Liaoning Chengda Biotechnology or generate 1.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Liaoning Chengda Biotechnology
Performance |
| Timeline |
| PetroChina |
| Liaoning Chengda Bio |
PetroChina and Liaoning Chengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Liaoning Chengda
The main advantage of trading using opposite PetroChina and Liaoning Chengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Liaoning Chengda 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 Liaoning Chengda will offset losses from the drop in Liaoning Chengda's long position.| PetroChina vs. China Express Airlines | PetroChina vs. Xinhua Winshare Publishing | PetroChina vs. Jinhui Liquor Co | PetroChina vs. Beijing Kaiwen Education |
| Liaoning Chengda vs. Chengdu Kanghua Biological | Liaoning Chengda vs. Beijing Wantai Biological | Liaoning Chengda vs. Suzhou Novoprotein Scientific | Liaoning Chengda 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 Stocks Directory module to find actively traded stocks across global markets.
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