Correlation Between Hainan Haiqi and PetroChina
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By analyzing existing cross correlation between Hainan Haiqi Transportation and PetroChina Co Ltd, you can compare the effects of market volatilities on Hainan Haiqi 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 Hainan Haiqi with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Haiqi and PetroChina.
Diversification Opportunities for Hainan Haiqi and PetroChina
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hainan and PetroChina is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Haiqi Transportation and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Hainan Haiqi 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 Hainan Haiqi Transportation 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 Hainan Haiqi i.e., Hainan Haiqi and PetroChina go up and down completely randomly.
Pair Corralation between Hainan Haiqi and PetroChina
Assuming the 90 days trading horizon Hainan Haiqi Transportation is expected to generate 2.96 times more return on investment than PetroChina. However, Hainan Haiqi is 2.96 times more volatile than PetroChina Co Ltd. It trades about 0.0 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.03 per unit of risk. If you would invest 2,038 in Hainan Haiqi Transportation on September 1, 2024 and sell it today you would lose (22.00) from holding Hainan Haiqi Transportation or give up 1.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Haiqi Transportation vs. PetroChina Co Ltd
Performance |
| Timeline |
| Hainan Haiqi Transpo |
| PetroChina |
Hainan Haiqi and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Haiqi and PetroChina
The main advantage of trading using opposite Hainan Haiqi and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Haiqi 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.| Hainan Haiqi vs. Nanjing Putian Telecommunications | Hainan Haiqi vs. Shenzhen Hifuture Electric | Hainan Haiqi vs. Tianjin Realty Development | Hainan Haiqi vs. Shenyang Huitian Thermal |
| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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