Correlation Between PetroChina and Shenzhen Sunlord
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By analyzing existing cross correlation between PetroChina Co Ltd and Shenzhen Sunlord Electronics, you can compare the effects of market volatilities on PetroChina and Shenzhen Sunlord 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 Shenzhen Sunlord. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Shenzhen Sunlord.
Diversification Opportunities for PetroChina and Shenzhen Sunlord
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between PetroChina and Shenzhen is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Shenzhen Sunlord Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Sunlord Ele 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 Shenzhen Sunlord. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Sunlord Ele has no effect on the direction of PetroChina i.e., PetroChina and Shenzhen Sunlord go up and down completely randomly.
Pair Corralation between PetroChina and Shenzhen Sunlord
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Shenzhen Sunlord. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 2.88 times less risky than Shenzhen Sunlord. The stock trades about -0.06 of its potential returns per unit of risk. The Shenzhen Sunlord Electronics is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,991 in Shenzhen Sunlord Electronics on September 5, 2024 and sell it today you would earn a total of 166.00 from holding Shenzhen Sunlord Electronics or generate 5.55% 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. Shenzhen Sunlord Electronics
Performance |
| Timeline |
| PetroChina |
| Shenzhen Sunlord Ele |
PetroChina and Shenzhen Sunlord Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Shenzhen Sunlord
The main advantage of trading using opposite PetroChina and Shenzhen Sunlord positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Shenzhen Sunlord 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 Shenzhen Sunlord will offset losses from the drop in Shenzhen Sunlord's long position.| PetroChina vs. Aofu Environmental Technology | PetroChina vs. Bengang Steel Plates | PetroChina vs. Guangzhou Jointas Chemical | PetroChina vs. Shenyang Chemical Industry |
| Shenzhen Sunlord vs. Keli Sensing Technology | Shenzhen Sunlord vs. Guangzhou Zhujiang Brewery | Shenzhen Sunlord vs. Linewell Software Co | Shenzhen Sunlord vs. Anhui Transport Consulting |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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