Correlation Between PetroChina and Shenzhen Centralcon
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By analyzing existing cross correlation between PetroChina Co Ltd and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on PetroChina and Shenzhen Centralcon 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 PetroChina with a short position of Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Shenzhen Centralcon.
Diversification Opportunities for PetroChina and Shenzhen Centralcon
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PetroChina and Shenzhen is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon and PetroChina 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 PetroChina Co Ltd are associated (or correlated) with Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of PetroChina i.e., PetroChina and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between PetroChina and Shenzhen Centralcon
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.66 times more return on investment than Shenzhen Centralcon. However, PetroChina Co Ltd is 1.52 times less risky than Shenzhen Centralcon. It trades about 0.07 of its potential returns per unit of risk. Shenzhen Centralcon Investment is currently generating about -0.01 per unit of risk. If you would invest 485.00 in PetroChina Co Ltd on September 25, 2024 and sell it today you would earn a total of 393.00 from holding PetroChina Co Ltd or generate 81.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Shenzhen Centralcon Investment
Performance |
| Timeline |
| PetroChina |
| Shenzhen Centralcon |
PetroChina and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Shenzhen Centralcon
The main advantage of trading using opposite PetroChina and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Shenzhen Centralcon 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 Shenzhen Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.| PetroChina vs. Xinjiang Baodi Mining | PetroChina vs. Guocheng Mining Co | PetroChina vs. Huaibei Mining Holdings | PetroChina vs. Fujian Oriental Silver |
| Shenzhen Centralcon vs. PetroChina Co Ltd | Shenzhen Centralcon vs. China Mobile Limited | Shenzhen Centralcon vs. CNOOC Limited | Shenzhen Centralcon vs. Ping An Insurance |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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