Correlation Between Guangdong Ellington and PetroChina
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By analyzing existing cross correlation between Guangdong Ellington Electronics and PetroChina Co Ltd, you can compare the effects of market volatilities on Guangdong Ellington 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 Guangdong Ellington with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Ellington and PetroChina.
Diversification Opportunities for Guangdong Ellington and PetroChina
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guangdong and PetroChina is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Ellington Electronic and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Guangdong Ellington 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 Guangdong Ellington Electronics 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 Guangdong Ellington i.e., Guangdong Ellington and PetroChina go up and down completely randomly.
Pair Corralation between Guangdong Ellington and PetroChina
Assuming the 90 days trading horizon Guangdong Ellington Electronics is expected to under-perform the PetroChina. In addition to that, Guangdong Ellington is 2.12 times more volatile than PetroChina Co Ltd. It trades about -0.03 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 845.00 in PetroChina Co Ltd on October 9, 2024 and sell it today you would earn a total of 46.00 from holding PetroChina Co Ltd or generate 5.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Guangdong Ellington Electronic vs. PetroChina Co Ltd
Performance |
Timeline |
Guangdong Ellington |
PetroChina |
Guangdong Ellington and PetroChina Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangdong Ellington and PetroChina
The main advantage of trading using opposite Guangdong Ellington and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Ellington 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.Guangdong Ellington vs. Biwin Storage Technology | Guangdong Ellington vs. PetroChina Co Ltd | Guangdong Ellington vs. Industrial and Commercial | Guangdong Ellington vs. China Construction Bank |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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