Correlation Between PetroChina and Zangge Holding
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By analyzing existing cross correlation between PetroChina Co Ltd and Zangge Holding Co, you can compare the effects of market volatilities on PetroChina and Zangge Holding 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 Zangge Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Zangge Holding.
Diversification Opportunities for PetroChina and Zangge Holding
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Zangge is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Zangge Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zangge Holding 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 Zangge Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zangge Holding has no effect on the direction of PetroChina i.e., PetroChina and Zangge Holding go up and down completely randomly.
Pair Corralation between PetroChina and Zangge Holding
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 1.04 times more return on investment than Zangge Holding. However, PetroChina is 1.04 times more volatile than Zangge Holding Co. It trades about 0.31 of its potential returns per unit of risk. Zangge Holding Co is currently generating about -0.03 per unit of risk. If you would invest 803.00 in PetroChina Co Ltd on September 29, 2024 and sell it today you would earn a total of 89.00 from holding PetroChina Co Ltd or generate 11.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Zangge Holding Co
Performance |
| Timeline |
| PetroChina |
| Zangge Holding |
PetroChina and Zangge Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Zangge Holding
The main advantage of trading using opposite PetroChina and Zangge Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Zangge Holding 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 Zangge Holding will offset losses from the drop in Zangge Holding's long position.| PetroChina vs. Zhejiang Kingland Pipeline | PetroChina vs. Huizhou Speed Wireless | PetroChina vs. Shaanxi Construction Machinery | PetroChina vs. Linktel Technologies Co |
| Zangge Holding vs. PetroChina Co Ltd | Zangge Holding vs. China Mobile Limited | Zangge Holding vs. CNOOC Limited | Zangge Holding 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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