Correlation Between Yonghui Superstores and PetroChina
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By analyzing existing cross correlation between Yonghui Superstores Co and PetroChina Co Ltd, you can compare the effects of market volatilities on Yonghui Superstores 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 Yonghui Superstores with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yonghui Superstores and PetroChina.
Diversification Opportunities for Yonghui Superstores and PetroChina
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yonghui and PetroChina is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Yonghui Superstores Co and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Yonghui Superstores 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 Yonghui Superstores Co 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 Yonghui Superstores i.e., Yonghui Superstores and PetroChina go up and down completely randomly.
Pair Corralation between Yonghui Superstores and PetroChina
Assuming the 90 days trading horizon Yonghui Superstores Co is expected to generate 2.22 times more return on investment than PetroChina. However, Yonghui Superstores is 2.22 times more volatile than PetroChina Co Ltd. It trades about 0.12 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.08 per unit of risk. If you would invest 289.00 in Yonghui Superstores Co on September 1, 2024 and sell it today you would earn a total of 215.00 from holding Yonghui Superstores Co or generate 74.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yonghui Superstores Co vs. PetroChina Co Ltd
Performance |
| Timeline |
| Yonghui Superstores |
| PetroChina |
Yonghui Superstores and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yonghui Superstores and PetroChina
The main advantage of trading using opposite Yonghui Superstores and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yonghui Superstores 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.| Yonghui Superstores vs. Easyhome New Retail | Yonghui Superstores vs. Industrial Bank Co | Yonghui Superstores vs. Chongqing Brewery Co | Yonghui Superstores vs. Panda Financial Holding |
| PetroChina vs. Dongjiang Environmental Co | PetroChina vs. Tonghua Grape Wine | PetroChina vs. Dezhan HealthCare Co | PetroChina vs. Guangdong Liantai Environmental |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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