Correlation Between Jinhui Liquor and PetroChina
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By analyzing existing cross correlation between Jinhui Liquor Co and PetroChina Co Ltd, you can compare the effects of market volatilities on Jinhui Liquor 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 Jinhui Liquor with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Liquor and PetroChina.
Diversification Opportunities for Jinhui Liquor and PetroChina
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jinhui and PetroChina is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Liquor Co and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Jinhui Liquor 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 Jinhui Liquor Co 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 Jinhui Liquor i.e., Jinhui Liquor and PetroChina go up and down completely randomly.
Pair Corralation between Jinhui Liquor and PetroChina
Assuming the 90 days trading horizon Jinhui Liquor Co is expected to under-perform the PetroChina. In addition to that, Jinhui Liquor is 1.09 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 0.06 per unit of volatility. If you would invest 502.00 in PetroChina Co Ltd on September 1, 2024 and sell it today you would earn a total of 302.00 from holding PetroChina Co Ltd or generate 60.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Liquor Co vs. PetroChina Co Ltd
Performance |
| Timeline |
| Jinhui Liquor |
| PetroChina |
Jinhui Liquor and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Liquor and PetroChina
The main advantage of trading using opposite Jinhui Liquor and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Liquor 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.| Jinhui Liquor vs. China Petroleum Chemical | Jinhui Liquor vs. PetroChina Co Ltd | Jinhui Liquor vs. China State Construction | Jinhui Liquor vs. China Railway Group |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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