Correlation Between BigBearai Holdings and PetroChina
Can any of the company-specific risk be diversified away by investing in both BigBearai Holdings and PetroChina at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining BigBearai Holdings and PetroChina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BigBearai Holdings and PetroChina Co Ltd, you can compare the effects of market volatilities on BigBearai Holdings 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 BigBearai Holdings with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of BigBearai Holdings and PetroChina.
Diversification Opportunities for BigBearai Holdings and PetroChina
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BigBearai and PetroChina is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding BigBearai Holdings and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and BigBearai Holdings 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 BigBearai Holdings 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 BigBearai Holdings i.e., BigBearai Holdings and PetroChina go up and down completely randomly.
Pair Corralation between BigBearai Holdings and PetroChina
Given the investment horizon of 90 days BigBearai Holdings is expected to generate 1.8 times more return on investment than PetroChina. However, BigBearai Holdings is 1.8 times more volatile than PetroChina Co Ltd. It trades about 0.13 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about 0.04 per unit of risk. If you would invest 158.00 in BigBearai Holdings on September 15, 2024 and sell it today you would earn a total of 94.00 from holding BigBearai Holdings or generate 59.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
BigBearai Holdings vs. PetroChina Co Ltd
Performance |
Timeline |
BigBearai Holdings |
PetroChina |
BigBearai Holdings and PetroChina Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BigBearai Holdings and PetroChina
The main advantage of trading using opposite BigBearai Holdings and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BigBearai Holdings 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.BigBearai Holdings vs. Innodata | BigBearai Holdings vs. CLPS Inc | BigBearai Holdings vs. ARB IOT Group | BigBearai Holdings vs. FiscalNote Holdings |
PetroChina vs. Equinor ASA | PetroChina vs. Origin Energy Ltd | PetroChina vs. Shell PLC | PetroChina vs. Eni SpA ADR |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |