Correlation Between PetroChina and Shenzhen Topway
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By analyzing existing cross correlation between PetroChina Co Ltd and Shenzhen Topway Video, you can compare the effects of market volatilities on PetroChina and Shenzhen Topway 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 Topway. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Shenzhen Topway.
Diversification Opportunities for PetroChina and Shenzhen Topway
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between PetroChina and Shenzhen is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Shenzhen Topway Video in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Topway Video 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 Topway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Topway Video has no effect on the direction of PetroChina i.e., PetroChina and Shenzhen Topway go up and down completely randomly.
Pair Corralation between PetroChina and Shenzhen Topway
Assuming the 90 days trading horizon PetroChina is expected to generate 1.25 times less return on investment than Shenzhen Topway. But when comparing it to its historical volatility, PetroChina Co Ltd is 1.85 times less risky than Shenzhen Topway. It trades about 0.07 of its potential returns per unit of risk. Shenzhen Topway Video is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 639.00 in Shenzhen Topway Video on September 14, 2024 and sell it today you would earn a total of 400.00 from holding Shenzhen Topway Video or generate 62.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Shenzhen Topway Video
Performance |
| Timeline |
| PetroChina |
| Shenzhen Topway Video |
PetroChina and Shenzhen Topway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Shenzhen Topway
The main advantage of trading using opposite PetroChina and Shenzhen Topway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Shenzhen Topway 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 Topway will offset losses from the drop in Shenzhen Topway's long position.| PetroChina vs. Sportsoul Co Ltd | PetroChina vs. Dook Media Group | PetroChina vs. Focus Media Information | PetroChina vs. Wasu Media Holding |
| Shenzhen Topway vs. Lutian Machinery Co | Shenzhen Topway vs. PetroChina Co Ltd | Shenzhen Topway vs. Bank of China | Shenzhen Topway vs. China Citic 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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