Correlation Between PetroChina and HengFeng Information
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By analyzing existing cross correlation between PetroChina Co Ltd and HengFeng Information Technology, you can compare the effects of market volatilities on PetroChina and HengFeng Information 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 HengFeng Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and HengFeng Information.
Diversification Opportunities for PetroChina and HengFeng Information
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PetroChina and HengFeng is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and HengFeng Information Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HengFeng Information 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 HengFeng Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HengFeng Information has no effect on the direction of PetroChina i.e., PetroChina and HengFeng Information go up and down completely randomly.
Pair Corralation between PetroChina and HengFeng Information
Assuming the 90 days trading horizon PetroChina is expected to generate 7.57 times less return on investment than HengFeng Information. But when comparing it to its historical volatility, PetroChina Co Ltd is 2.24 times less risky than HengFeng Information. It trades about 0.05 of its potential returns per unit of risk. HengFeng Information Technology is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 908.00 in HengFeng Information Technology on September 17, 2024 and sell it today you would earn a total of 513.00 from holding HengFeng Information Technology or generate 56.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
PetroChina Co Ltd vs. HengFeng Information Technolog
Performance |
Timeline |
PetroChina |
HengFeng Information |
PetroChina and HengFeng Information Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PetroChina and HengFeng Information
The main advantage of trading using opposite PetroChina and HengFeng Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, HengFeng Information 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 HengFeng Information will offset losses from the drop in HengFeng Information's long position.PetroChina vs. Aluminum Corp of | PetroChina vs. Jiaozuo Wanfang Aluminum | PetroChina vs. Eastroc Beverage Group | PetroChina vs. Jiangxi Selon Industrial |
HengFeng Information vs. China Petroleum Chemical | HengFeng Information vs. PetroChina Co Ltd | HengFeng Information vs. China State Construction | HengFeng Information vs. China Railway Group |
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 CEOs Directory module to screen CEOs from public companies around the world.
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