Correlation Between Gelsenwasser and PetroChina Company
Can any of the company-specific risk be diversified away by investing in both Gelsenwasser and PetroChina Company at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Gelsenwasser and PetroChina Company into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gelsenwasser AG and PetroChina Company Limited, you can compare the effects of market volatilities on Gelsenwasser and PetroChina Company 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 Gelsenwasser with a short position of PetroChina Company. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gelsenwasser and PetroChina Company.
Diversification Opportunities for Gelsenwasser and PetroChina Company
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gelsenwasser and PetroChina is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Gelsenwasser AG and PetroChina Company Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina Limited and Gelsenwasser 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 Gelsenwasser AG are associated (or correlated) with PetroChina Company. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PetroChina Limited has no effect on the direction of Gelsenwasser i.e., Gelsenwasser and PetroChina Company go up and down completely randomly.
Pair Corralation between Gelsenwasser and PetroChina Company
Assuming the 90 days horizon Gelsenwasser AG is expected to under-perform the PetroChina Company. But the stock apears to be less risky and, when comparing its historical volatility, Gelsenwasser AG is 1.67 times less risky than PetroChina Company. The stock trades about -0.04 of its potential returns per unit of risk. The PetroChina Company Limited is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 14.00 in PetroChina Company Limited on September 2, 2024 and sell it today you would earn a total of 53.00 from holding PetroChina Company Limited or generate 378.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gelsenwasser AG vs. PetroChina Company Limited
Performance |
| Timeline |
| Gelsenwasser AG |
| PetroChina Limited |
Gelsenwasser and PetroChina Company Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gelsenwasser and PetroChina Company
The main advantage of trading using opposite Gelsenwasser and PetroChina Company positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gelsenwasser position performs unexpectedly, PetroChina Company 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 Company will offset losses from the drop in PetroChina Company's long position.| Gelsenwasser vs. Cleanaway Waste Management | Gelsenwasser vs. Mobilezone Holding AG | Gelsenwasser vs. Cogent Communications Holdings | Gelsenwasser vs. Zoom Video Communications |
| PetroChina Company vs. Gladstone Investment | PetroChina Company vs. LG Display Co | PetroChina Company vs. MGIC INVESTMENT | PetroChina Company vs. SEI INVESTMENTS |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| 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 | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Transaction History View history of all your transactions and understand their impact on performance |