Correlation Between Jiahe Foods and PetroChina
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By analyzing existing cross correlation between Jiahe Foods Industry and PetroChina Co Ltd, you can compare the effects of market volatilities on Jiahe Foods 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 Jiahe Foods with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiahe Foods and PetroChina.
Diversification Opportunities for Jiahe Foods and PetroChina
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jiahe and PetroChina is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Jiahe Foods Industry and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Jiahe Foods 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 Jiahe Foods Industry 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 Jiahe Foods i.e., Jiahe Foods and PetroChina go up and down completely randomly.
Pair Corralation between Jiahe Foods and PetroChina
Assuming the 90 days trading horizon Jiahe Foods Industry is expected to generate 4.11 times more return on investment than PetroChina. However, Jiahe Foods is 4.11 times more volatile than PetroChina Co Ltd. It trades about 0.37 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.03 per unit of risk. If you would invest 1,168 in Jiahe Foods Industry on September 1, 2024 and sell it today you would earn a total of 433.00 from holding Jiahe Foods Industry or generate 37.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiahe Foods Industry vs. PetroChina Co Ltd
Performance |
| Timeline |
| Jiahe Foods Industry |
| PetroChina |
Jiahe Foods and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiahe Foods and PetroChina
The main advantage of trading using opposite Jiahe Foods and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiahe Foods 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.| Jiahe Foods vs. Nanjing Putian Telecommunications | Jiahe Foods vs. Shenzhen Hifuture Electric | Jiahe Foods vs. Tianjin Realty Development | Jiahe Foods vs. Shenyang Huitian Thermal |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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