Correlation Between Nantong Haixing and PetroChina
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By analyzing existing cross correlation between Nantong Haixing Electronics and PetroChina Co Ltd, you can compare the effects of market volatilities on Nantong Haixing 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 Nantong Haixing with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nantong Haixing and PetroChina.
Diversification Opportunities for Nantong Haixing and PetroChina
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nantong and PetroChina is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Nantong Haixing Electronics and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Nantong Haixing 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 Nantong Haixing Electronics 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 Nantong Haixing i.e., Nantong Haixing and PetroChina go up and down completely randomly.
Pair Corralation between Nantong Haixing and PetroChina
Assuming the 90 days trading horizon Nantong Haixing Electronics is expected to generate 3.47 times more return on investment than PetroChina. However, Nantong Haixing is 3.47 times more volatile than PetroChina Co Ltd. It trades about 0.29 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.41 per unit of risk. If you would invest 1,356 in Nantong Haixing Electronics on November 27, 2024 and sell it today you would earn a total of 173.00 from holding Nantong Haixing Electronics or generate 12.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nantong Haixing Electronics vs. PetroChina Co Ltd
Performance |
| Timeline |
| Nantong Haixing Elec |
| PetroChina |
Nantong Haixing and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nantong Haixing and PetroChina
The main advantage of trading using opposite Nantong Haixing and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nantong Haixing 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.| Nantong Haixing vs. Hubei Geoway Investment | Nantong Haixing vs. Zhongrun Resources Investment | Nantong Haixing vs. Zoje Resources Investment | Nantong Haixing vs. Vanfund Urban Investment |
| PetroChina vs. Xinxiang Chemical Fiber | PetroChina vs. Duzhe Publishing Media | PetroChina vs. Mega info Media CoLtd | PetroChina vs. Longxing Chemical Stock |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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