Correlation Between Sinocat Environmental and PetroChina
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By analyzing existing cross correlation between Sinocat Environmental Technology and PetroChina Co Ltd, you can compare the effects of market volatilities on Sinocat 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 Sinocat Environmental with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinocat Environmental and PetroChina.
Diversification Opportunities for Sinocat Environmental and PetroChina
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sinocat and PetroChina is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Sinocat Environmental Technolo and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Sinocat 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 Sinocat 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 Sinocat Environmental i.e., Sinocat Environmental and PetroChina go up and down completely randomly.
Pair Corralation between Sinocat Environmental and PetroChina
Assuming the 90 days trading horizon Sinocat Environmental Technology is expected to generate 4.19 times more return on investment than PetroChina. However, Sinocat Environmental is 4.19 times more volatile than PetroChina Co Ltd. It trades about 0.39 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.11 per unit of risk. If you would invest 1,516 in Sinocat Environmental Technology on September 3, 2024 and sell it today you would earn a total of 469.00 from holding Sinocat Environmental Technology or generate 30.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinocat Environmental Technolo vs. PetroChina Co Ltd
Performance |
| Timeline |
| Sinocat Environmental |
| PetroChina |
Sinocat Environmental and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinocat Environmental and PetroChina
The main advantage of trading using opposite Sinocat Environmental and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinocat 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.| Sinocat Environmental vs. PetroChina Co Ltd | Sinocat Environmental vs. China Mobile Limited | Sinocat Environmental vs. Industrial and Commercial | Sinocat Environmental vs. China Life Insurance |
| PetroChina vs. China Express Airlines | PetroChina vs. Xinhua Winshare Publishing | PetroChina vs. Jinhui Liquor Co | PetroChina vs. Beijing Kaiwen Education |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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