Correlation Between PetroChina and Rex Energy
Can any of the company-specific risk be diversified away by investing in both PetroChina and Rex Energy at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining PetroChina and Rex Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PetroChina Co and Rex Energy, you can compare the effects of market volatilities on PetroChina and Rex Energy 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 Rex Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Rex Energy.
Diversification Opportunities for PetroChina and Rex Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PetroChina and Rex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co and Rex Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rex Energy 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 are associated (or correlated) with Rex Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rex Energy has no effect on the direction of PetroChina i.e., PetroChina and Rex Energy go up and down completely randomly.
Pair Corralation between PetroChina and Rex Energy
If you would invest (100.00) in Rex Energy on January 24, 2024 and sell it today you would earn a total of 100.00 from holding Rex Energy or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co vs. Rex Energy
Performance |
| Timeline |
| PetroChina |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Rex Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PetroChina and Rex Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Rex Energy
The main advantage of trading using opposite PetroChina and Rex Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Rex Energy 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 Rex Energy will offset losses from the drop in Rex Energy's long position.| PetroChina vs. Where Food Comes | PetroChina vs. Kaltura | PetroChina vs. United Homes Group | PetroChina vs. Park City Group |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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