Correlation Between Metro Investment and PetroChina
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By analyzing existing cross correlation between Metro Investment Development and PetroChina Co Ltd, you can compare the effects of market volatilities on Metro Investment 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 Metro Investment with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metro Investment and PetroChina.
Diversification Opportunities for Metro Investment and PetroChina
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Metro and PetroChina is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Metro Investment Development and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Metro Investment 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 Metro Investment Development 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 Metro Investment i.e., Metro Investment and PetroChina go up and down completely randomly.
Pair Corralation between Metro Investment and PetroChina
Assuming the 90 days trading horizon Metro Investment is expected to generate 6.61 times less return on investment than PetroChina. In addition to that, Metro Investment is 1.74 times more volatile than PetroChina Co Ltd. It trades about 0.01 of its total potential returns per unit of risk. PetroChina Co Ltd is currently generating about 0.07 per unit of volatility. If you would invest 484.00 in PetroChina Co Ltd on September 26, 2024 and sell it today you would earn a total of 394.00 from holding PetroChina Co Ltd or generate 81.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Metro Investment Development vs. PetroChina Co Ltd
Performance |
Timeline |
Metro Investment Dev |
PetroChina |
Metro Investment and PetroChina Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Metro Investment and PetroChina
The main advantage of trading using opposite Metro Investment and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metro Investment 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.Metro Investment vs. PetroChina Co Ltd | Metro Investment vs. China Mobile Limited | Metro Investment vs. CNOOC Limited | Metro Investment vs. Ping An Insurance |
PetroChina vs. Zhejiang Kingland Pipeline | PetroChina vs. Jiangsu Zhongtian Technology | PetroChina vs. Shaanxi Beiyuan Chemical | PetroChina vs. Sinomine Resource Exploration |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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