Correlation Between Shenzhen Clou and PetroChina
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By analyzing existing cross correlation between Shenzhen Clou Electronics and PetroChina Co Ltd, you can compare the effects of market volatilities on Shenzhen Clou 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 Shenzhen Clou with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Clou and PetroChina.
Diversification Opportunities for Shenzhen Clou and PetroChina
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenzhen and PetroChina is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Clou Electronics and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Shenzhen Clou 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 Shenzhen Clou 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 Shenzhen Clou i.e., Shenzhen Clou and PetroChina go up and down completely randomly.
Pair Corralation between Shenzhen Clou and PetroChina
Assuming the 90 days trading horizon Shenzhen Clou Electronics is expected to generate 3.48 times more return on investment than PetroChina. However, Shenzhen Clou is 3.48 times more volatile than PetroChina Co Ltd. It trades about 0.13 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.09 per unit of risk. If you would invest 419.00 in Shenzhen Clou Electronics on August 30, 2024 and sell it today you would earn a total of 39.00 from holding Shenzhen Clou Electronics or generate 9.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Clou Electronics vs. PetroChina Co Ltd
Performance |
| Timeline |
| Shenzhen Clou Electronics |
| PetroChina |
Shenzhen Clou and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Clou and PetroChina
The main advantage of trading using opposite Shenzhen Clou and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Clou 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.| Shenzhen Clou vs. PetroChina Co Ltd | Shenzhen Clou vs. China State Construction | Shenzhen Clou vs. China Mobile Limited | Shenzhen Clou vs. Industrial and Commercial |
| PetroChina vs. Guilin Seamild Foods | PetroChina vs. Great Sun Foods Co | PetroChina vs. Jiahe Foods Industry | PetroChina vs. Lander Sports Development |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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