Correlation Between Xiangyang Automobile and PetroChina
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and PetroChina Co Ltd, you can compare the effects of market volatilities on Xiangyang Automobile 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 Xiangyang Automobile with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and PetroChina.
Diversification Opportunities for Xiangyang Automobile and PetroChina
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Xiangyang and PetroChina is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Xiangyang Automobile 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 Xiangyang Automobile Bearing 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 Xiangyang Automobile i.e., Xiangyang Automobile and PetroChina go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and PetroChina
Assuming the 90 days trading horizon Xiangyang Automobile Bearing is expected to under-perform the PetroChina. In addition to that, Xiangyang Automobile is 4.08 times more volatile than PetroChina Co Ltd. It trades about -0.13 of its total potential returns per unit of risk. PetroChina Co Ltd is currently generating about 0.18 per unit of volatility. If you would invest 843.00 in PetroChina Co Ltd on October 8, 2024 and sell it today you would earn a total of 42.00 from holding PetroChina Co Ltd or generate 4.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Xiangyang Automobile Bearing vs. PetroChina Co Ltd
Performance |
Timeline |
Xiangyang Automobile |
PetroChina |
Xiangyang Automobile and PetroChina Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xiangyang Automobile and PetroChina
The main advantage of trading using opposite Xiangyang Automobile and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile 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.Xiangyang Automobile vs. Southern PublishingMedia Co | Xiangyang Automobile vs. China Asset Management | Xiangyang Automobile vs. Cultural Investment Holdings | Xiangyang Automobile vs. JiShi Media Co |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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