Correlation Between Zhongshan Broad and PetroChina
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By analyzing existing cross correlation between Zhongshan Broad Ocean Motor and PetroChina Co Ltd, you can compare the effects of market volatilities on Zhongshan Broad 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 Zhongshan Broad with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongshan Broad and PetroChina.
Diversification Opportunities for Zhongshan Broad and PetroChina
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zhongshan and PetroChina is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Zhongshan Broad Ocean Motor and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Zhongshan Broad 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 Zhongshan Broad Ocean Motor 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 Zhongshan Broad i.e., Zhongshan Broad and PetroChina go up and down completely randomly.
Pair Corralation between Zhongshan Broad and PetroChina
Assuming the 90 days trading horizon Zhongshan Broad is expected to generate 1.54 times less return on investment than PetroChina. But when comparing it to its historical volatility, Zhongshan Broad Ocean Motor is 1.1 times less risky than PetroChina. It trades about 0.03 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 541.00 in PetroChina Co Ltd on November 27, 2024 and sell it today you would earn a total of 249.00 from holding PetroChina Co Ltd or generate 46.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongshan Broad Ocean Motor vs. PetroChina Co Ltd
Performance |
| Timeline |
| Zhongshan Broad Ocean |
| PetroChina |
Zhongshan Broad and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongshan Broad and PetroChina
The main advantage of trading using opposite Zhongshan Broad and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongshan Broad 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.| Zhongshan Broad vs. Dongguan Tarry Electronics | Zhongshan Broad vs. Jointo Energy Investment | Zhongshan Broad vs. Hubei Geoway Investment | Zhongshan Broad vs. Beijing Mainstreets Investment |
| PetroChina vs. Xinxiang Chemical Fiber | PetroChina vs. Duzhe Publishing Media | PetroChina vs. Mega info Media CoLtd | PetroChina vs. Longxing Chemical Stock |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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