Correlation Between Jiangsu Seagull and PetroChina
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By analyzing existing cross correlation between Jiangsu Seagull Cooling and PetroChina Co Ltd, you can compare the effects of market volatilities on Jiangsu Seagull 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 Jiangsu Seagull with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Seagull and PetroChina.
Diversification Opportunities for Jiangsu Seagull and PetroChina
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and PetroChina is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Seagull Cooling and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Jiangsu Seagull 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 Jiangsu Seagull Cooling 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 Jiangsu Seagull i.e., Jiangsu Seagull and PetroChina go up and down completely randomly.
Pair Corralation between Jiangsu Seagull and PetroChina
Assuming the 90 days trading horizon Jiangsu Seagull Cooling is expected to generate 3.15 times more return on investment than PetroChina. However, Jiangsu Seagull is 3.15 times more volatile than PetroChina Co Ltd. It trades about 0.14 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about 0.04 per unit of risk. If you would invest 940.00 in Jiangsu Seagull Cooling on October 25, 2024 and sell it today you would earn a total of 268.00 from holding Jiangsu Seagull Cooling or generate 28.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Seagull Cooling vs. PetroChina Co Ltd
Performance |
| Timeline |
| Jiangsu Seagull Cooling |
| PetroChina |
Jiangsu Seagull and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Seagull and PetroChina
The main advantage of trading using opposite Jiangsu Seagull and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Seagull 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.| Jiangsu Seagull vs. Qingdao Foods Co | Jiangsu Seagull vs. Eyebright Medical Technology | Jiangsu Seagull vs. Namchow Food Group | Jiangsu Seagull vs. Anji Foodstuff Co |
| PetroChina vs. Anji Foodstuff Co | PetroChina vs. Puya Semiconductor Shanghai | PetroChina vs. Great Sun Foods Co | PetroChina vs. GRINM Semiconductor Materials |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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