Correlation Between Shenzhen Hans and PetroChina
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By analyzing existing cross correlation between Shenzhen Hans CNC and PetroChina Co Ltd, you can compare the effects of market volatilities on Shenzhen Hans 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 Hans with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hans and PetroChina.
Diversification Opportunities for Shenzhen Hans and PetroChina
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and PetroChina is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hans CNC and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Shenzhen Hans 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 Hans CNC 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 Hans i.e., Shenzhen Hans and PetroChina go up and down completely randomly.
Pair Corralation between Shenzhen Hans and PetroChina
Assuming the 90 days trading horizon Shenzhen Hans CNC is expected to generate 1.63 times more return on investment than PetroChina. However, Shenzhen Hans is 1.63 times more volatile than PetroChina Co Ltd. It trades about 0.3 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.25 per unit of risk. If you would invest 3,360 in Shenzhen Hans CNC on November 7, 2024 and sell it today you would earn a total of 446.00 from holding Shenzhen Hans CNC or generate 13.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Hans CNC vs. PetroChina Co Ltd
Performance |
| Timeline |
| Shenzhen Hans CNC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| PetroChina |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Shenzhen Hans and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hans and PetroChina
The main advantage of trading using opposite Shenzhen Hans and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hans 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 Hans vs. Shanghai SK Automation | Shenzhen Hans vs. Chongqing Mas SciTech | Shenzhen Hans vs. Zhejiang Kaishan Compressor |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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