Correlation Between Ningbo Fujia and PetroChina
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By analyzing existing cross correlation between Ningbo Fujia Industrial and PetroChina Co Ltd, you can compare the effects of market volatilities on Ningbo Fujia 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 Ningbo Fujia with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fujia and PetroChina.
Diversification Opportunities for Ningbo Fujia and PetroChina
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningbo and PetroChina is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fujia Industrial and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Ningbo Fujia 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 Ningbo Fujia Industrial 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 Ningbo Fujia i.e., Ningbo Fujia and PetroChina go up and down completely randomly.
Pair Corralation between Ningbo Fujia and PetroChina
Assuming the 90 days trading horizon Ningbo Fujia Industrial is expected to generate 2.69 times more return on investment than PetroChina. However, Ningbo Fujia is 2.69 times more volatile than PetroChina Co Ltd. It trades about 0.1 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about 0.15 per unit of risk. If you would invest 1,393 in Ningbo Fujia Industrial on October 17, 2024 and sell it today you would earn a total of 103.00 from holding Ningbo Fujia Industrial or generate 7.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Fujia Industrial vs. PetroChina Co Ltd
Performance |
| Timeline |
| Ningbo Fujia Industrial |
| PetroChina |
Ningbo Fujia and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fujia and PetroChina
The main advantage of trading using opposite Ningbo Fujia and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fujia 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.| Ningbo Fujia vs. Xinjiang Baodi Mining | Ningbo Fujia vs. Shengda Mining Co | Ningbo Fujia vs. Shandong Longquan Pipeline | Ningbo Fujia vs. Shenyang Blue Silver |
| PetroChina vs. Ningbo Fujia Industrial | PetroChina vs. Guangzhou Haozhi Industrial | PetroChina vs. Guangdong Jingyi Metal | PetroChina vs. Iat Automobile Technology |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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