Correlation Between PetroChina and Shanxi Tond
Specify exactly 2 symbols:
By analyzing existing cross correlation between PetroChina Co Ltd and Shanxi Tond Chemical, you can compare the effects of market volatilities on PetroChina and Shanxi Tond 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 Shanxi Tond. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Shanxi Tond.
Diversification Opportunities for PetroChina and Shanxi Tond
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PetroChina and Shanxi is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Shanxi Tond Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanxi Tond Chemical 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 Shanxi Tond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanxi Tond Chemical has no effect on the direction of PetroChina i.e., PetroChina and Shanxi Tond go up and down completely randomly.
Pair Corralation between PetroChina and Shanxi Tond
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.98 times more return on investment than Shanxi Tond. However, PetroChina Co Ltd is 1.03 times less risky than Shanxi Tond. It trades about 0.07 of its potential returns per unit of risk. Shanxi Tond Chemical is currently generating about -0.03 per unit of risk. If you would invest 506.00 in PetroChina Co Ltd on October 13, 2024 and sell it today you would earn a total of 369.00 from holding PetroChina Co Ltd or generate 72.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Shanxi Tond Chemical
Performance |
| Timeline |
| PetroChina |
| Shanxi Tond Chemical |
PetroChina and Shanxi Tond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Shanxi Tond
The main advantage of trading using opposite PetroChina and Shanxi Tond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Shanxi Tond 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 Shanxi Tond will offset losses from the drop in Shanxi Tond's long position.| PetroChina vs. Shannon Semiconductor Technology | PetroChina vs. Qingdao Haier Biomedical | PetroChina vs. Shanghai V Test Semiconductor | PetroChina vs. Zhonghong Pulin Medical |
| Shanxi Tond vs. Nanjing Vishee Medical | Shanxi Tond vs. Shenzhen MYS Environmental | Shanxi Tond vs. Tinavi Medical Technologies | Shanxi Tond vs. GreenTech Environmental Co |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Stocks Directory Find actively traded stocks across global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |