Correlation Between Dalian Zeus and PetroChina
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By analyzing existing cross correlation between Dalian Zeus Entertainment and PetroChina Co Ltd, you can compare the effects of market volatilities on Dalian Zeus 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 Dalian Zeus with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dalian Zeus and PetroChina.
Diversification Opportunities for Dalian Zeus and PetroChina
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dalian and PetroChina is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Dalian Zeus Entertainment and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Dalian Zeus 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 Dalian Zeus Entertainment 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 Dalian Zeus i.e., Dalian Zeus and PetroChina go up and down completely randomly.
Pair Corralation between Dalian Zeus and PetroChina
Assuming the 90 days trading horizon Dalian Zeus Entertainment is expected to generate 4.07 times more return on investment than PetroChina. However, Dalian Zeus is 4.07 times more volatile than PetroChina Co Ltd. It trades about 0.48 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.18 per unit of risk. If you would invest 350.00 in Dalian Zeus Entertainment on August 26, 2024 and sell it today you would earn a total of 200.00 from holding Dalian Zeus Entertainment or generate 57.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dalian Zeus Entertainment vs. PetroChina Co Ltd
Performance |
| Timeline |
| Dalian Zeus Entertainment |
| PetroChina |
Dalian Zeus and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dalian Zeus and PetroChina
The main advantage of trading using opposite Dalian Zeus and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dalian Zeus 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.| Dalian Zeus vs. Ming Yang Smart | Dalian Zeus vs. 159681 | Dalian Zeus vs. 159005 | Dalian Zeus vs. Loctek Ergonomic Technology |
| PetroChina vs. Shenzhen Clou Electronics | PetroChina vs. Hainan Airlines Co | PetroChina vs. Mango Excellent Media | PetroChina vs. Dalian Zeus Entertainment |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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