Correlation Between PetroChina and Huizhou Desay
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By analyzing existing cross correlation between PetroChina Co Ltd and Huizhou Desay SV, you can compare the effects of market volatilities on PetroChina and Huizhou Desay 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 Huizhou Desay. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Huizhou Desay.
Diversification Opportunities for PetroChina and Huizhou Desay
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PetroChina and Huizhou is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Huizhou Desay SV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huizhou Desay SV 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 Huizhou Desay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huizhou Desay SV has no effect on the direction of PetroChina i.e., PetroChina and Huizhou Desay go up and down completely randomly.
Pair Corralation between PetroChina and Huizhou Desay
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.63 times more return on investment than Huizhou Desay. However, PetroChina Co Ltd is 1.58 times less risky than Huizhou Desay. It trades about 0.07 of its potential returns per unit of risk. Huizhou Desay SV is currently generating about 0.02 per unit of risk. If you would invest 487.00 in PetroChina Co Ltd on September 23, 2024 and sell it today you would earn a total of 347.00 from holding PetroChina Co Ltd or generate 71.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
PetroChina Co Ltd vs. Huizhou Desay SV
Performance |
Timeline |
PetroChina |
Huizhou Desay SV |
PetroChina and Huizhou Desay Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PetroChina and Huizhou Desay
The main advantage of trading using opposite PetroChina and Huizhou Desay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Huizhou Desay 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 Huizhou Desay will offset losses from the drop in Huizhou Desay's long position.PetroChina vs. Zhejiang Kingland Pipeline | PetroChina vs. Jiangsu Zhongtian Technology | PetroChina vs. Shaanxi Beiyuan Chemical | PetroChina vs. Sinomine Resource Exploration |
Huizhou Desay vs. Bank of China | Huizhou Desay vs. Kweichow Moutai Co | Huizhou Desay vs. PetroChina Co Ltd | Huizhou Desay vs. Bank of Communications |
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.
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