Correlation Between Qijing Machinery and PetroChina
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By analyzing existing cross correlation between Qijing Machinery and PetroChina Co Ltd, you can compare the effects of market volatilities on Qijing Machinery 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 Qijing Machinery with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qijing Machinery and PetroChina.
Diversification Opportunities for Qijing Machinery and PetroChina
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Qijing and PetroChina is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Qijing Machinery and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Qijing Machinery 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 Qijing Machinery 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 Qijing Machinery i.e., Qijing Machinery and PetroChina go up and down completely randomly.
Pair Corralation between Qijing Machinery and PetroChina
Assuming the 90 days trading horizon Qijing Machinery is expected to generate 2.16 times less return on investment than PetroChina. In addition to that, Qijing Machinery is 1.41 times more volatile than PetroChina Co Ltd. It trades about 0.01 of its total potential returns per unit of risk. PetroChina Co Ltd is currently generating about 0.04 per unit of volatility. If you would invest 686.00 in PetroChina Co Ltd on September 4, 2024 and sell it today you would earn a total of 124.00 from holding PetroChina Co Ltd or generate 18.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qijing Machinery vs. PetroChina Co Ltd
Performance |
| Timeline |
| Qijing Machinery |
| PetroChina |
Qijing Machinery and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qijing Machinery and PetroChina
The main advantage of trading using opposite Qijing Machinery and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qijing Machinery 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.| Qijing Machinery vs. PetroChina Co Ltd | Qijing Machinery vs. China Mobile Limited | Qijing Machinery vs. CNOOC Limited | Qijing Machinery vs. Ping An Insurance |
| PetroChina vs. Sichuan Hebang Biotechnology | PetroChina vs. Guangdong Marubi Biotechnology | PetroChina vs. Shandong Sanyuan Biotechnology | PetroChina vs. Bloomage Biotechnology Corp |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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