Correlation Between Jiangsu Zhongtian and PetroChina
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By analyzing existing cross correlation between Jiangsu Zhongtian Technology and PetroChina Co Ltd, you can compare the effects of market volatilities on Jiangsu Zhongtian 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 Jiangsu Zhongtian with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Zhongtian and PetroChina.
Diversification Opportunities for Jiangsu Zhongtian and PetroChina
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jiangsu and PetroChina is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Zhongtian Technology and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Jiangsu Zhongtian 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 Jiangsu Zhongtian Technology 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 Jiangsu Zhongtian i.e., Jiangsu Zhongtian and PetroChina go up and down completely randomly.
Pair Corralation between Jiangsu Zhongtian and PetroChina
Assuming the 90 days trading horizon Jiangsu Zhongtian is expected to generate 10.77 times less return on investment than PetroChina. In addition to that, Jiangsu Zhongtian is 1.2 times more volatile than PetroChina Co Ltd. It trades about 0.01 of its total potential returns per unit of risk. PetroChina Co Ltd is currently generating about 0.07 per unit of volatility. If you would invest 484.00 in PetroChina Co Ltd on September 26, 2024 and sell it today you would earn a total of 394.00 from holding PetroChina Co Ltd or generate 81.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Jiangsu Zhongtian Technology vs. PetroChina Co Ltd
Performance |
| Timeline |
| Jiangsu Zhongtian |
| PetroChina |
Jiangsu Zhongtian and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Zhongtian and PetroChina
The main advantage of trading using opposite Jiangsu Zhongtian and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Zhongtian 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.| Jiangsu Zhongtian vs. Kweichow Moutai Co | Jiangsu Zhongtian vs. Contemporary Amperex Technology | Jiangsu Zhongtian vs. G bits Network Technology | Jiangsu Zhongtian vs. BYD Co Ltd |
| PetroChina vs. Zhejiang Kingland Pipeline | PetroChina vs. Jiangsu Zhongtian Technology | PetroChina vs. Shaanxi Beiyuan Chemical | PetroChina vs. Sinomine Resource Exploration |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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