Correlation Between Sinomine Resource and PetroChina
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By analyzing existing cross correlation between Sinomine Resource Exploration and PetroChina Co Ltd, you can compare the effects of market volatilities on Sinomine Resource 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 Sinomine Resource with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomine Resource and PetroChina.
Diversification Opportunities for Sinomine Resource and PetroChina
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sinomine and PetroChina is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Sinomine Resource Exploration and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Sinomine Resource 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 Sinomine Resource Exploration 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 Sinomine Resource i.e., Sinomine Resource and PetroChina go up and down completely randomly.
Pair Corralation between Sinomine Resource and PetroChina
Assuming the 90 days trading horizon Sinomine Resource Exploration is expected to under-perform the PetroChina. In addition to that, Sinomine Resource is 1.39 times more volatile than PetroChina Co Ltd. It trades about -0.23 of its total potential returns per unit of risk. PetroChina Co Ltd is currently generating about 0.18 per unit of volatility. If you would invest 828.00 in PetroChina Co Ltd on October 14, 2024 and sell it today you would earn a total of 47.00 from holding PetroChina Co Ltd or generate 5.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomine Resource Exploration vs. PetroChina Co Ltd
Performance |
| Timeline |
| Sinomine Resource |
| PetroChina |
Sinomine Resource and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomine Resource and PetroChina
The main advantage of trading using opposite Sinomine Resource and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomine Resource 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.| Sinomine Resource vs. Shanghai Phichem Material | Sinomine Resource vs. Dr Peng Telecom | Sinomine Resource vs. Bank of Communications | Sinomine Resource vs. Jinsanjiang Silicon Material |
| PetroChina vs. Anhui Transport Consulting | PetroChina vs. Heilongjiang Transport Development | PetroChina vs. TongFu Microelectronics Co | PetroChina vs. Success Electronics |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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