Correlation Between Shanghai Metersbonwe and PetroChina
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By analyzing existing cross correlation between Shanghai Metersbonwe FashionAccessories and PetroChina Co Ltd, you can compare the effects of market volatilities on Shanghai Metersbonwe 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 Shanghai Metersbonwe with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Metersbonwe and PetroChina.
Diversification Opportunities for Shanghai Metersbonwe and PetroChina
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shanghai and PetroChina is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Metersbonwe FashionAc and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Shanghai Metersbonwe 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 Shanghai Metersbonwe FashionAccessories 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 Shanghai Metersbonwe i.e., Shanghai Metersbonwe and PetroChina go up and down completely randomly.
Pair Corralation between Shanghai Metersbonwe and PetroChina
Assuming the 90 days trading horizon Shanghai Metersbonwe FashionAccessories is expected to generate 5.4 times more return on investment than PetroChina. However, Shanghai Metersbonwe is 5.4 times more volatile than PetroChina Co Ltd. It trades about 0.21 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.12 per unit of risk. If you would invest 186.00 in Shanghai Metersbonwe FashionAccessories on September 4, 2024 and sell it today you would earn a total of 36.00 from holding Shanghai Metersbonwe FashionAccessories or generate 19.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Metersbonwe FashionAc vs. PetroChina Co Ltd
Performance |
| Timeline |
| Shanghai Metersbonwe |
| PetroChina |
Shanghai Metersbonwe and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Metersbonwe and PetroChina
The main advantage of trading using opposite Shanghai Metersbonwe and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Metersbonwe 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.| Shanghai Metersbonwe vs. Contec Medical Systems | Shanghai Metersbonwe vs. Cowealth Medical China | Shanghai Metersbonwe vs. Maider Medical Industry | Shanghai Metersbonwe vs. Western Superconducting Tech |
| PetroChina vs. Sichuan Hebang Biotechnology | PetroChina vs. Guangdong Marubi Biotechnology | PetroChina vs. Shandong Sanyuan Biotechnology | PetroChina vs. Bloomage Biotechnology Corp |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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