Correlation Between Fujian Oriental and PetroChina
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By analyzing existing cross correlation between Fujian Oriental Silver and PetroChina Co Ltd, you can compare the effects of market volatilities on Fujian Oriental 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 Fujian Oriental with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Oriental and PetroChina.
Diversification Opportunities for Fujian Oriental and PetroChina
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fujian and PetroChina is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Oriental Silver and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Fujian Oriental 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 Fujian Oriental Silver 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 Fujian Oriental i.e., Fujian Oriental and PetroChina go up and down completely randomly.
Pair Corralation between Fujian Oriental and PetroChina
Assuming the 90 days trading horizon Fujian Oriental Silver is expected to under-perform the PetroChina. In addition to that, Fujian Oriental is 2.52 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 0.28 per unit of volatility. If you would invest 803.00 in PetroChina Co Ltd on September 25, 2024 and sell it today you would earn a total of 75.00 from holding PetroChina Co Ltd or generate 9.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
Fujian Oriental Silver vs. PetroChina Co Ltd
Performance |
Timeline |
Fujian Oriental Silver |
PetroChina |
Fujian Oriental and PetroChina Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fujian Oriental and PetroChina
The main advantage of trading using opposite Fujian Oriental and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Oriental 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.Fujian Oriental vs. Cultural Investment Holdings | Fujian Oriental vs. Gome Telecom Equipment | Fujian Oriental vs. Bus Online Co | Fujian Oriental vs. Holitech Technology Co |
PetroChina vs. Xinjiang Baodi Mining | PetroChina vs. Guocheng Mining Co | PetroChina vs. Huaibei Mining Holdings | PetroChina vs. Fujian Oriental Silver |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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