Correlation Between Kuangda Technology and PetroChina
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By analyzing existing cross correlation between Kuangda Technology Group and PetroChina Co Ltd, you can compare the effects of market volatilities on Kuangda Technology 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 Kuangda Technology with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and PetroChina.
Diversification Opportunities for Kuangda Technology and PetroChina
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kuangda and PetroChina is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Kuangda Technology 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 Kuangda Technology Group 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 Kuangda Technology i.e., Kuangda Technology and PetroChina go up and down completely randomly.
Pair Corralation between Kuangda Technology and PetroChina
Assuming the 90 days trading horizon Kuangda Technology Group is expected to generate 1.75 times more return on investment than PetroChina. However, Kuangda Technology is 1.75 times more volatile than PetroChina Co Ltd. It trades about 0.21 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about 0.06 per unit of risk. If you would invest 384.00 in Kuangda Technology Group on September 12, 2024 and sell it today you would earn a total of 197.00 from holding Kuangda Technology Group or generate 51.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Kuangda Technology Group vs. PetroChina Co Ltd
Performance |
Timeline |
Kuangda Technology |
PetroChina |
Kuangda Technology and PetroChina Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kuangda Technology and PetroChina
The main advantage of trading using opposite Kuangda Technology and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology 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.Kuangda Technology vs. Lutian Machinery Co | Kuangda Technology vs. PetroChina Co Ltd | Kuangda Technology vs. Bank of China | Kuangda Technology vs. Gansu Jiu Steel |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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