Correlation Between PetroChina and Zhejiang Qianjiang
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By analyzing existing cross correlation between PetroChina Co Ltd and Zhejiang Qianjiang Motorcycle, you can compare the effects of market volatilities on PetroChina and Zhejiang Qianjiang 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 Zhejiang Qianjiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Zhejiang Qianjiang.
Diversification Opportunities for PetroChina and Zhejiang Qianjiang
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between PetroChina and Zhejiang is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Zhejiang Qianjiang Motorcycle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Qianjiang 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 Zhejiang Qianjiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Qianjiang has no effect on the direction of PetroChina i.e., PetroChina and Zhejiang Qianjiang go up and down completely randomly.
Pair Corralation between PetroChina and Zhejiang Qianjiang
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Zhejiang Qianjiang. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 1.56 times less risky than Zhejiang Qianjiang. The stock trades about -0.07 of its potential returns per unit of risk. The Zhejiang Qianjiang Motorcycle is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,761 in Zhejiang Qianjiang Motorcycle on September 3, 2024 and sell it today you would lose (112.00) from holding Zhejiang Qianjiang Motorcycle or give up 6.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Zhejiang Qianjiang Motorcycle
Performance |
| Timeline |
| PetroChina |
| Zhejiang Qianjiang |
PetroChina and Zhejiang Qianjiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Zhejiang Qianjiang
The main advantage of trading using opposite PetroChina and Zhejiang Qianjiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Zhejiang Qianjiang 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 Zhejiang Qianjiang will offset losses from the drop in Zhejiang Qianjiang's long position.| PetroChina vs. China Express Airlines | PetroChina vs. Xinhua Winshare Publishing | PetroChina vs. Jinhui Liquor Co | PetroChina vs. Beijing Kaiwen Education |
| Zhejiang Qianjiang vs. PetroChina Co Ltd | Zhejiang Qianjiang vs. China Mobile Limited | Zhejiang Qianjiang vs. Industrial and Commercial | Zhejiang Qianjiang vs. China Life 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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