Correlation Between PetroChina and Zhejiang Yinlun
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By analyzing existing cross correlation between PetroChina Co Ltd and Zhejiang Yinlun Machinery, you can compare the effects of market volatilities on PetroChina and Zhejiang Yinlun 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 Yinlun. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Zhejiang Yinlun.
Diversification Opportunities for PetroChina and Zhejiang Yinlun
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PetroChina and Zhejiang is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Zhejiang Yinlun Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yinlun Machinery 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 Yinlun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yinlun Machinery has no effect on the direction of PetroChina i.e., PetroChina and Zhejiang Yinlun go up and down completely randomly.
Pair Corralation between PetroChina and Zhejiang Yinlun
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.67 times more return on investment than Zhejiang Yinlun. However, PetroChina Co Ltd is 1.49 times less risky than Zhejiang Yinlun. It trades about -0.06 of its potential returns per unit of risk. Zhejiang Yinlun Machinery is currently generating about -0.07 per unit of risk. If you would invest 875.00 in PetroChina Co Ltd on September 13, 2024 and sell it today you would lose (30.00) from holding PetroChina Co Ltd or give up 3.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Zhejiang Yinlun Machinery
Performance |
| Timeline |
| PetroChina |
| Zhejiang Yinlun Machinery |
PetroChina and Zhejiang Yinlun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Zhejiang Yinlun
The main advantage of trading using opposite PetroChina and Zhejiang Yinlun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Zhejiang Yinlun 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 Yinlun will offset losses from the drop in Zhejiang Yinlun's long position.| PetroChina vs. Ningxia Building Materials | PetroChina vs. Chongqing Sulian Plastic | PetroChina vs. Guangzhou Tinci Materials | PetroChina vs. Tianjin Pengling Rubber |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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