Correlation Between PetroChina and Soochow Securities
Specify exactly 2 symbols:
By analyzing existing cross correlation between PetroChina Co Ltd and Soochow Securities Co, you can compare the effects of market volatilities on PetroChina and Soochow Securities 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 Soochow Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Soochow Securities.
Diversification Opportunities for PetroChina and Soochow Securities
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PetroChina and Soochow is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Soochow Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soochow Securities 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 Soochow Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soochow Securities has no effect on the direction of PetroChina i.e., PetroChina and Soochow Securities go up and down completely randomly.
Pair Corralation between PetroChina and Soochow Securities
Assuming the 90 days trading horizon PetroChina is expected to generate 5.4 times less return on investment than Soochow Securities. But when comparing it to its historical volatility, PetroChina Co Ltd is 1.5 times less risky than Soochow Securities. It trades about 0.04 of its potential returns per unit of risk. Soochow Securities Co is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 619.00 in Soochow Securities Co on September 22, 2024 and sell it today you would earn a total of 189.00 from holding Soochow Securities Co or generate 30.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.36% |
Values | Daily Returns |
PetroChina Co Ltd vs. Soochow Securities Co
Performance |
Timeline |
PetroChina |
Soochow Securities |
PetroChina and Soochow Securities Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PetroChina and Soochow Securities
The main advantage of trading using opposite PetroChina and Soochow Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Soochow Securities 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 Soochow Securities will offset losses from the drop in Soochow Securities' long position.PetroChina vs. Guangdong Wens Foodstuff | ||
PetroChina vs. Youyou Foods Co | ||
PetroChina vs. China Asset Management | ||
PetroChina vs. Ligao Foods CoLtd |
Soochow Securities vs. China Petroleum Chemical | ||
Soochow Securities vs. PetroChina Co Ltd | ||
Soochow Securities vs. China State Construction | ||
Soochow Securities 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |