Correlation Between PetroChina and Hainan HNA
Specify exactly 2 symbols:
By analyzing existing cross correlation between PetroChina Co Ltd and Hainan HNA Infrastructure, you can compare the effects of market volatilities on PetroChina and Hainan HNA 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 Hainan HNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Hainan HNA.
Diversification Opportunities for PetroChina and Hainan HNA
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between PetroChina and Hainan is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Hainan HNA Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan HNA Infrastructure 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 Hainan HNA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan HNA Infrastructure has no effect on the direction of PetroChina i.e., PetroChina and Hainan HNA go up and down completely randomly.
Pair Corralation between PetroChina and Hainan HNA
Assuming the 90 days trading horizon PetroChina is expected to generate 5.64 times less return on investment than Hainan HNA. But when comparing it to its historical volatility, PetroChina Co Ltd is 1.47 times less risky than Hainan HNA. It trades about 0.03 of its potential returns per unit of risk. Hainan HNA Infrastructure is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 325.00 in Hainan HNA Infrastructure on September 25, 2024 and sell it today you would earn a total of 59.00 from holding Hainan HNA Infrastructure or generate 18.15% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
PetroChina Co Ltd vs. Hainan HNA Infrastructure
Performance |
Timeline |
PetroChina |
Hainan HNA Infrastructure |
PetroChina and Hainan HNA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PetroChina and Hainan HNA
The main advantage of trading using opposite PetroChina and Hainan HNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Hainan HNA 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 Hainan HNA will offset losses from the drop in Hainan HNA's long position.PetroChina vs. Xinjiang Baodi Mining | PetroChina vs. Guocheng Mining Co | PetroChina vs. Huaibei Mining Holdings | PetroChina vs. Fujian Oriental Silver |
Hainan HNA vs. PetroChina Co Ltd | Hainan HNA vs. China Mobile Limited | Hainan HNA vs. CNOOC Limited | Hainan HNA vs. Ping An Insurance |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing |