Correlation Between PetroChina and Henan Shuanghui
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By analyzing existing cross correlation between PetroChina Co Ltd and Henan Shuanghui Investment, you can compare the effects of market volatilities on PetroChina and Henan Shuanghui 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 Henan Shuanghui. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Henan Shuanghui.
Diversification Opportunities for PetroChina and Henan Shuanghui
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between PetroChina and Henan is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Henan Shuanghui Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Shuanghui Inve 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 Henan Shuanghui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Shuanghui Inve has no effect on the direction of PetroChina i.e., PetroChina and Henan Shuanghui go up and down completely randomly.
Pair Corralation between PetroChina and Henan Shuanghui
Assuming the 90 days trading horizon PetroChina is expected to generate 1.15 times less return on investment than Henan Shuanghui. In addition to that, PetroChina is 1.17 times more volatile than Henan Shuanghui Investment. It trades about 0.09 of its total potential returns per unit of risk. Henan Shuanghui Investment is currently generating about 0.12 per unit of volatility. If you would invest 2,294 in Henan Shuanghui Investment on September 13, 2024 and sell it today you would earn a total of 281.00 from holding Henan Shuanghui Investment or generate 12.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
PetroChina Co Ltd vs. Henan Shuanghui Investment
Performance |
Timeline |
PetroChina |
Henan Shuanghui Inve |
PetroChina and Henan Shuanghui Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PetroChina and Henan Shuanghui
The main advantage of trading using opposite PetroChina and Henan Shuanghui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Henan Shuanghui 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 Henan Shuanghui will offset losses from the drop in Henan Shuanghui's long position.PetroChina vs. Sportsoul Co Ltd | PetroChina vs. Dook Media Group | PetroChina vs. Focus Media Information | PetroChina vs. Wasu Media Holding |
Henan Shuanghui vs. Nanjing Putian Telecommunications | Henan Shuanghui vs. Tianjin Realty Development | Henan Shuanghui vs. Kangyue Technology Co | Henan Shuanghui vs. Shenzhen Hifuture Electric |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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