Correlation Between Touchstone International and PetroChina
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By analyzing existing cross correlation between Touchstone International Medical and PetroChina Co Ltd, you can compare the effects of market volatilities on Touchstone International 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 Touchstone International with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone International and PetroChina.
Diversification Opportunities for Touchstone International and PetroChina
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Touchstone and PetroChina is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone International Medic and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Touchstone International 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 Touchstone International Medical 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 Touchstone International i.e., Touchstone International and PetroChina go up and down completely randomly.
Pair Corralation between Touchstone International and PetroChina
Assuming the 90 days trading horizon Touchstone International Medical is expected to generate 1.45 times more return on investment than PetroChina. However, Touchstone International is 1.45 times more volatile than PetroChina Co Ltd. It trades about 0.2 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about 0.05 per unit of risk. If you would invest 1,389 in Touchstone International Medical on September 15, 2024 and sell it today you would earn a total of 567.00 from holding Touchstone International Medical or generate 40.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Touchstone International Medic vs. PetroChina Co Ltd
Performance |
Timeline |
Touchstone International |
PetroChina |
Touchstone International and PetroChina Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Touchstone International and PetroChina
The main advantage of trading using opposite Touchstone International and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone International 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.Touchstone International vs. Industrial and Commercial | Touchstone International vs. Kweichow Moutai Co | Touchstone International vs. Agricultural Bank of | Touchstone International vs. China Mobile Limited |
PetroChina vs. Touchstone International Medical | PetroChina vs. Cofoe Medical Technology | PetroChina vs. CareRay Digital Medical | PetroChina vs. CICC Fund Management |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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