Correlation Between PetroChina and Citic Guoan
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By analyzing existing cross correlation between PetroChina Co Ltd and Citic Guoan Wine, you can compare the effects of market volatilities on PetroChina and Citic Guoan 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 PetroChina with a short position of Citic Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Citic Guoan.
Diversification Opportunities for PetroChina and Citic Guoan
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between PetroChina and Citic is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Citic Guoan Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citic Guoan Wine and PetroChina 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 PetroChina Co Ltd are associated (or correlated) with Citic Guoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citic Guoan Wine has no effect on the direction of PetroChina i.e., PetroChina and Citic Guoan go up and down completely randomly.
Pair Corralation between PetroChina and Citic Guoan
Assuming the 90 days trading horizon PetroChina is expected to generate 4.07 times less return on investment than Citic Guoan. But when comparing it to its historical volatility, PetroChina Co Ltd is 1.41 times less risky than Citic Guoan. It trades about 0.06 of its potential returns per unit of risk. Citic Guoan Wine is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 470.00 in Citic Guoan Wine on September 12, 2024 and sell it today you would earn a total of 158.00 from holding Citic Guoan Wine or generate 33.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
PetroChina Co Ltd vs. Citic Guoan Wine
Performance |
Timeline |
PetroChina |
Citic Guoan Wine |
PetroChina and Citic Guoan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PetroChina and Citic Guoan
The main advantage of trading using opposite PetroChina and Citic Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Citic Guoan 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 Citic Guoan will offset losses from the drop in Citic Guoan's long position.PetroChina vs. Digital China Information | PetroChina vs. DO Home Collection | PetroChina vs. Tongding Interconnection Information | PetroChina vs. Guangzhou Dongfang Hotel |
Citic Guoan vs. China Petroleum Chemical | Citic Guoan vs. PetroChina Co Ltd | Citic Guoan vs. China State Construction | Citic Guoan vs. China Railway Group |
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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