Correlation Between Shenzhen Bioeasy and PetroChina
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By analyzing existing cross correlation between Shenzhen Bioeasy Biotechnology and PetroChina Co Ltd, you can compare the effects of market volatilities on Shenzhen Bioeasy 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 Bioeasy with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bioeasy and PetroChina.
Diversification Opportunities for Shenzhen Bioeasy and PetroChina
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenzhen and PetroChina is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bioeasy Biotechnology and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Shenzhen Bioeasy 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 Bioeasy Biotechnology 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 Bioeasy i.e., Shenzhen Bioeasy and PetroChina go up and down completely randomly.
Pair Corralation between Shenzhen Bioeasy and PetroChina
Assuming the 90 days trading horizon Shenzhen Bioeasy Biotechnology is expected to generate 2.27 times more return on investment than PetroChina. However, Shenzhen Bioeasy is 2.27 times more volatile than PetroChina Co Ltd. It trades about 0.06 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.07 per unit of risk. If you would invest 789.00 in Shenzhen Bioeasy Biotechnology on September 3, 2024 and sell it today you would earn a total of 199.00 from holding Shenzhen Bioeasy Biotechnology or generate 25.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Bioeasy Biotechnology vs. PetroChina Co Ltd
Performance |
| Timeline |
| Shenzhen Bioeasy Bio |
| PetroChina |
Shenzhen Bioeasy and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Bioeasy and PetroChina
The main advantage of trading using opposite Shenzhen Bioeasy and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bioeasy 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 Bioeasy vs. Chengdu Kanghua Biological | Shenzhen Bioeasy vs. Beijing Wantai Biological | Shenzhen Bioeasy vs. Suzhou Novoprotein Scientific | Shenzhen Bioeasy vs. Aluminum Corp of |
| PetroChina vs. China Express Airlines | PetroChina vs. Xinhua Winshare Publishing | PetroChina vs. Jinhui Liquor Co | PetroChina vs. Beijing Kaiwen Education |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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