Correlation Between PetroChina and Exxon
Can any of the company-specific risk be diversified away by investing in both PetroChina and Exxon 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 PetroChina and Exxon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PetroChina Co and Exxon Mobil Corp, you can compare the effects of market volatilities on PetroChina and Exxon 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 PetroChina with a short position of Exxon. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Exxon.
Diversification Opportunities for PetroChina and Exxon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PetroChina and Exxon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co and Exxon Mobil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exxon Mobil Corp and PetroChina 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 PetroChina Co are associated (or correlated) with Exxon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exxon Mobil Corp has no effect on the direction of PetroChina i.e., PetroChina and Exxon go up and down completely randomly.
Pair Corralation between PetroChina and Exxon
If you would invest (100.00) in PetroChina Co on February 4, 2024 and sell it today you would earn a total of 100.00 from holding PetroChina Co or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
PetroChina Co vs. Exxon Mobil Corp
Performance |
Timeline |
PetroChina |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Exxon Mobil Corp |
PetroChina and Exxon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PetroChina and Exxon
The main advantage of trading using opposite PetroChina and Exxon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Exxon 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 Exxon will offset losses from the drop in Exxon's long position.PetroChina vs. Delek Logistics Partners | PetroChina vs. Mediag3 | PetroChina vs. 51Talk Online Education | PetroChina vs. Ryanair Holdings PLC |
Exxon vs. Shell PLC ADR | Exxon vs. Petroleo Brasileiro Petrobras | Exxon vs. Suncor Energy | Exxon vs. Petrleo Brasileiro SA |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance |