Correlation Between Aofu Environmental and PetroChina
Specify exactly 2 symbols:
By analyzing existing cross correlation between Aofu Environmental Technology and PetroChina Co Ltd, you can compare the effects of market volatilities on Aofu Environmental 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 Aofu Environmental with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aofu Environmental and PetroChina.
Diversification Opportunities for Aofu Environmental and PetroChina
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aofu and PetroChina is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Aofu Environmental Technology and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Aofu Environmental 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 Aofu Environmental Technology 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 Aofu Environmental i.e., Aofu Environmental and PetroChina go up and down completely randomly.
Pair Corralation between Aofu Environmental and PetroChina
Assuming the 90 days trading horizon Aofu Environmental Technology is expected to generate 3.37 times more return on investment than PetroChina. However, Aofu Environmental is 3.37 times more volatile than PetroChina Co Ltd. It trades about 0.16 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.06 per unit of risk. If you would invest 1,125 in Aofu Environmental Technology on September 5, 2024 and sell it today you would earn a total of 106.00 from holding Aofu Environmental Technology or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aofu Environmental Technology vs. PetroChina Co Ltd
Performance |
| Timeline |
| Aofu Environmental |
| PetroChina |
Aofu Environmental and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aofu Environmental and PetroChina
The main advantage of trading using opposite Aofu Environmental and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aofu Environmental 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.| Aofu Environmental vs. Zijin Mining Group | Aofu Environmental vs. Baoshan Iron Steel | Aofu Environmental vs. Rongsheng Petrochemical Co | Aofu Environmental vs. Shandong Gold Mining |
| PetroChina vs. Aofu Environmental Technology | PetroChina vs. Bengang Steel Plates | PetroChina vs. Guangzhou Jointas Chemical | PetroChina vs. Shenyang Chemical Industry |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |