Correlation Between Shaanxi Construction and PetroChina
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By analyzing existing cross correlation between Shaanxi Construction Machinery and PetroChina Co Ltd, you can compare the effects of market volatilities on Shaanxi Construction 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 Shaanxi Construction with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Construction and PetroChina.
Diversification Opportunities for Shaanxi Construction and PetroChina
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shaanxi and PetroChina is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Construction Machinery and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Shaanxi Construction 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 Shaanxi Construction Machinery 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 Shaanxi Construction i.e., Shaanxi Construction and PetroChina go up and down completely randomly.
Pair Corralation between Shaanxi Construction and PetroChina
Assuming the 90 days trading horizon Shaanxi Construction is expected to generate 5.02 times less return on investment than PetroChina. In addition to that, Shaanxi Construction is 2.68 times more volatile than PetroChina Co Ltd. It trades about 0.03 of its total potential returns per unit of risk. PetroChina Co Ltd is currently generating about 0.35 per unit of volatility. If you would invest 802.00 in PetroChina Co Ltd on September 27, 2024 and sell it today you would earn a total of 100.00 from holding PetroChina Co Ltd or generate 12.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Construction Machinery vs. PetroChina Co Ltd
Performance |
| Timeline |
| Shaanxi Construction |
| PetroChina |
Shaanxi Construction and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Construction and PetroChina
The main advantage of trading using opposite Shaanxi Construction and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Construction 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.| Shaanxi Construction vs. Cambricon Technologies Corp | Shaanxi Construction vs. Loongson Technology Corp | Shaanxi Construction vs. Shenzhen Fortune Trend | Shaanxi Construction vs. Chongqing Road Bridge |
| PetroChina vs. Zhejiang Kingland Pipeline | PetroChina vs. Huizhou Speed Wireless | PetroChina vs. Shaanxi Construction Machinery | PetroChina vs. Linktel Technologies Co |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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