Correlation Between Shenzhen Glory and PetroChina
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By analyzing existing cross correlation between Shenzhen Glory Medical and PetroChina Co Ltd, you can compare the effects of market volatilities on Shenzhen Glory 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 Glory with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Glory and PetroChina.
Diversification Opportunities for Shenzhen Glory and PetroChina
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenzhen and PetroChina is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Glory Medical and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Shenzhen Glory 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 Glory Medical 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 Glory i.e., Shenzhen Glory and PetroChina go up and down completely randomly.
Pair Corralation between Shenzhen Glory and PetroChina
Assuming the 90 days trading horizon Shenzhen Glory Medical is expected to generate 1.65 times more return on investment than PetroChina. However, Shenzhen Glory is 1.65 times more volatile than PetroChina Co Ltd. It trades about -0.01 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.23 per unit of risk. If you would invest 308.00 in Shenzhen Glory Medical on November 1, 2024 and sell it today you would lose (3.00) from holding Shenzhen Glory Medical or give up 0.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Glory Medical vs. PetroChina Co Ltd
Performance |
| Timeline |
| Shenzhen Glory Medical |
| PetroChina |
Shenzhen Glory and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Glory and PetroChina
The main advantage of trading using opposite Shenzhen Glory and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Glory 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 Glory vs. Aluminum Corp of | Shenzhen Glory vs. Beijing Kingsoft Office | Shenzhen Glory vs. Jiaozuo Wanfang Aluminum | Shenzhen Glory vs. AUPU Home Style |
| PetroChina vs. Shenzhen Glory Medical | PetroChina vs. CareRay Digital Medical | PetroChina vs. Chison Medical Technologies | PetroChina vs. Touchstone International Medical |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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