Correlation Between China International and PetroChina
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By analyzing existing cross correlation between China International Travel and PetroChina Co Ltd, you can compare the effects of market volatilities on China International and PetroChina 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 China International with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of China International and PetroChina.
Diversification Opportunities for China International and PetroChina
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and PetroChina is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding China International Travel and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and China International 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 China International Travel are associated (or correlated) with PetroChina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PetroChina has no effect on the direction of China International i.e., China International and PetroChina go up and down completely randomly.
Pair Corralation between China International and PetroChina
Assuming the 90 days trading horizon China International Travel is expected to under-perform the PetroChina. In addition to that, China International is 1.2 times more volatile than PetroChina Co Ltd. It trades about -0.09 of its total potential returns per unit of risk. PetroChina Co Ltd is currently generating about 0.06 per unit of volatility. If you would invest 495.00 in PetroChina Co Ltd on September 3, 2024 and sell it today you would earn a total of 309.00 from holding PetroChina Co Ltd or generate 62.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China International Travel vs. PetroChina Co Ltd
Performance |
| Timeline |
| China International |
| PetroChina |
China International and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China International and PetroChina
The main advantage of trading using opposite China International and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China International position performs unexpectedly, PetroChina 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 PetroChina will offset losses from the drop in PetroChina's long position.| China International vs. PetroChina Co Ltd | China International vs. China Mobile Limited | China International vs. Industrial and Commercial | China International vs. China Life Insurance |
| PetroChina vs. China Express Airlines | PetroChina vs. Xinhua Winshare Publishing | PetroChina vs. Jinhui Liquor Co | PetroChina vs. Beijing Kaiwen Education |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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