Correlation Between Zangge Holding and PetroChina
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By analyzing existing cross correlation between Zangge Holding Co and PetroChina Co Ltd, you can compare the effects of market volatilities on Zangge Holding 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 Zangge Holding with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zangge Holding and PetroChina.
Diversification Opportunities for Zangge Holding and PetroChina
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zangge and PetroChina is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Zangge Holding Co and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Zangge Holding 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 Zangge Holding Co 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 Zangge Holding i.e., Zangge Holding and PetroChina go up and down completely randomly.
Pair Corralation between Zangge Holding and PetroChina
Assuming the 90 days trading horizon Zangge Holding Co is expected to under-perform the PetroChina. But the stock apears to be less risky and, when comparing its historical volatility, Zangge Holding Co is 1.04 times less risky than PetroChina. The stock trades about -0.03 of its potential returns per unit of risk. The PetroChina Co Ltd is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 803.00 in PetroChina Co Ltd on September 28, 2024 and sell it today you would earn a total of 89.00 from holding PetroChina Co Ltd or generate 11.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zangge Holding Co vs. PetroChina Co Ltd
Performance |
| Timeline |
| Zangge Holding |
| PetroChina |
Zangge Holding and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zangge Holding and PetroChina
The main advantage of trading using opposite Zangge Holding and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zangge Holding 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.| Zangge Holding vs. PetroChina Co Ltd | Zangge Holding vs. China Mobile Limited | Zangge Holding vs. CNOOC Limited | Zangge Holding vs. Ping An Insurance |
| PetroChina vs. Ping An Insurance | PetroChina vs. Qilu Bank Co | PetroChina vs. China Construction Bank | PetroChina vs. Bank of Suzhou |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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