Correlation Between PetroChina and Kunshan Guoli
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By analyzing existing cross correlation between PetroChina Co Ltd and Kunshan Guoli Electronic, you can compare the effects of market volatilities on PetroChina and Kunshan Guoli 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 Kunshan Guoli. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Kunshan Guoli.
Diversification Opportunities for PetroChina and Kunshan Guoli
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between PetroChina and Kunshan is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Kunshan Guoli Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunshan Guoli Electronic 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 Ltd are associated (or correlated) with Kunshan Guoli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunshan Guoli Electronic has no effect on the direction of PetroChina i.e., PetroChina and Kunshan Guoli go up and down completely randomly.
Pair Corralation between PetroChina and Kunshan Guoli
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Kunshan Guoli. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 1.69 times less risky than Kunshan Guoli. The stock trades about -0.05 of its potential returns per unit of risk. The Kunshan Guoli Electronic is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,345 in Kunshan Guoli Electronic on September 9, 2024 and sell it today you would earn a total of 977.00 from holding Kunshan Guoli Electronic or generate 29.21% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
PetroChina Co Ltd vs. Kunshan Guoli Electronic
Performance |
Timeline |
PetroChina |
Kunshan Guoli Electronic |
PetroChina and Kunshan Guoli Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PetroChina and Kunshan Guoli
The main advantage of trading using opposite PetroChina and Kunshan Guoli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Kunshan Guoli 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 Kunshan Guoli will offset losses from the drop in Kunshan Guoli's long position.PetroChina vs. Runjian Communication Co | PetroChina vs. Oppein Home Group | PetroChina vs. Eastern Communications Co | PetroChina vs. Shandong Homey Aquatic |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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