Correlation Between PetroChina and Zhongshan Public
Specify exactly 2 symbols:
By analyzing existing cross correlation between PetroChina Co Ltd and Zhongshan Public Utilities, you can compare the effects of market volatilities on PetroChina and Zhongshan Public 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 Zhongshan Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Zhongshan Public.
Diversification Opportunities for PetroChina and Zhongshan Public
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PetroChina and Zhongshan is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Zhongshan Public Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongshan Public Uti 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 Zhongshan Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongshan Public Uti has no effect on the direction of PetroChina i.e., PetroChina and Zhongshan Public go up and down completely randomly.
Pair Corralation between PetroChina and Zhongshan Public
Assuming the 90 days trading horizon PetroChina is expected to generate 1.32 times less return on investment than Zhongshan Public. In addition to that, PetroChina is 1.17 times more volatile than Zhongshan Public Utilities. It trades about 0.04 of its total potential returns per unit of risk. Zhongshan Public Utilities is currently generating about 0.06 per unit of volatility. If you would invest 715.00 in Zhongshan Public Utilities on September 14, 2024 and sell it today you would earn a total of 191.00 from holding Zhongshan Public Utilities or generate 26.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Zhongshan Public Utilities
Performance |
| Timeline |
| PetroChina |
| Zhongshan Public Uti |
PetroChina and Zhongshan Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Zhongshan Public
The main advantage of trading using opposite PetroChina and Zhongshan Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Zhongshan Public 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 Zhongshan Public will offset losses from the drop in Zhongshan Public's long position.| PetroChina vs. Sportsoul Co Ltd | PetroChina vs. Dook Media Group | PetroChina vs. Focus Media Information | PetroChina vs. Wasu Media Holding |
| Zhongshan Public vs. Biwin Storage Technology | Zhongshan Public vs. PetroChina Co Ltd | Zhongshan Public vs. Industrial and Commercial | Zhongshan Public vs. China Construction Bank |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges |