Correlation Between PetroChina and Zhongrun Resources
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By analyzing existing cross correlation between PetroChina Co Ltd and Zhongrun Resources Investment, you can compare the effects of market volatilities on PetroChina and Zhongrun Resources 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 Zhongrun Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Zhongrun Resources.
Diversification Opportunities for PetroChina and Zhongrun Resources
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Zhongrun is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Zhongrun Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongrun Resources 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 Zhongrun Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongrun Resources has no effect on the direction of PetroChina i.e., PetroChina and Zhongrun Resources go up and down completely randomly.
Pair Corralation between PetroChina and Zhongrun Resources
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.48 times more return on investment than Zhongrun Resources. However, PetroChina Co Ltd is 2.09 times less risky than Zhongrun Resources. It trades about 0.03 of its potential returns per unit of risk. Zhongrun Resources Investment is currently generating about 0.0 per unit of risk. If you would invest 791.00 in PetroChina Co Ltd on September 26, 2024 and sell it today you would earn a total of 87.00 from holding PetroChina Co Ltd or generate 11.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.66% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Zhongrun Resources Investment
Performance |
| Timeline |
| PetroChina |
| Zhongrun Resources |
PetroChina and Zhongrun Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Zhongrun Resources
The main advantage of trading using opposite PetroChina and Zhongrun Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Zhongrun Resources 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 Zhongrun Resources will offset losses from the drop in Zhongrun Resources' long position.| PetroChina vs. Zhejiang Kingland Pipeline | PetroChina vs. Jiangsu Zhongtian Technology | PetroChina vs. Shaanxi Beiyuan Chemical | PetroChina vs. Sinomine Resource Exploration |
| Zhongrun Resources vs. PetroChina Co Ltd | Zhongrun Resources vs. China Mobile Limited | Zhongrun Resources vs. CNOOC Limited | Zhongrun Resources 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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