Correlation Between Southern PublishingMedia and PetroChina
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By analyzing existing cross correlation between Southern PublishingMedia Co and PetroChina Co Ltd, you can compare the effects of market volatilities on Southern PublishingMedia and PetroChina 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 Southern PublishingMedia with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern PublishingMedia and PetroChina.
Diversification Opportunities for Southern PublishingMedia and PetroChina
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Southern and PetroChina is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Southern PublishingMedia Co and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Southern PublishingMedia 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 Southern PublishingMedia Co are associated (or correlated) with PetroChina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PetroChina has no effect on the direction of Southern PublishingMedia i.e., Southern PublishingMedia and PetroChina go up and down completely randomly.
Pair Corralation between Southern PublishingMedia and PetroChina
Assuming the 90 days trading horizon Southern PublishingMedia Co is expected to generate 1.67 times more return on investment than PetroChina. However, Southern PublishingMedia is 1.67 times more volatile than PetroChina Co Ltd. It trades about 0.1 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about 0.01 per unit of risk. If you would invest 1,288 in Southern PublishingMedia Co on September 24, 2024 and sell it today you would earn a total of 229.00 from holding Southern PublishingMedia Co or generate 17.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Southern PublishingMedia Co vs. PetroChina Co Ltd
Performance |
Timeline |
Southern PublishingMedia |
PetroChina |
Southern PublishingMedia and PetroChina Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Southern PublishingMedia and PetroChina
The main advantage of trading using opposite Southern PublishingMedia and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southern PublishingMedia position performs unexpectedly, PetroChina 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 PetroChina will offset losses from the drop in PetroChina's long position.Southern PublishingMedia vs. PetroChina Co Ltd | Southern PublishingMedia vs. China Mobile Limited | Southern PublishingMedia vs. CNOOC Limited | Southern PublishingMedia vs. Ping An Insurance |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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