Correlation Between Kontour Medical and PetroChina
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By analyzing existing cross correlation between Kontour Medical Technology and PetroChina Co Ltd, you can compare the effects of market volatilities on Kontour Medical 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 Kontour Medical with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kontour Medical and PetroChina.
Diversification Opportunities for Kontour Medical and PetroChina
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kontour and PetroChina is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Kontour Medical Technology and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Kontour Medical 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 Kontour Medical 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 Kontour Medical i.e., Kontour Medical and PetroChina go up and down completely randomly.
Pair Corralation between Kontour Medical and PetroChina
Assuming the 90 days trading horizon Kontour Medical Technology is expected to generate 6.59 times more return on investment than PetroChina. However, Kontour Medical is 6.59 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 -0.4 per unit of risk. If you would invest 2,962 in Kontour Medical Technology on November 29, 2024 and sell it today you would earn a total of 328.00 from holding Kontour Medical Technology or generate 11.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kontour Medical Technology vs. PetroChina Co Ltd
Performance |
| Timeline |
| Kontour Medical Tech |
| PetroChina |
Kontour Medical and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kontour Medical and PetroChina
The main advantage of trading using opposite Kontour Medical and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kontour Medical 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.| Kontour Medical vs. Jinhe Biotechnology Co | Kontour Medical vs. Offcn Education Technology | Kontour Medical vs. Qtone Education Group | Kontour Medical vs. Jiangsu Phoenix Publishing |
| PetroChina vs. China Eastern Airlines | PetroChina vs. INKON Life Technology | PetroChina vs. Longshine Technology Co | PetroChina vs. Changchun UP Optotech |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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