Correlation Between PetroChina and Shenzhen Silver
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By analyzing existing cross correlation between PetroChina Co Ltd and Shenzhen Silver Basis, you can compare the effects of market volatilities on PetroChina and Shenzhen Silver 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 Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Shenzhen Silver.
Diversification Opportunities for PetroChina and Shenzhen Silver
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PetroChina and Shenzhen is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Shenzhen Silver Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Silver Basis 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 Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Silver Basis has no effect on the direction of PetroChina i.e., PetroChina and Shenzhen Silver go up and down completely randomly.
Pair Corralation between PetroChina and Shenzhen Silver
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.55 times more return on investment than Shenzhen Silver. However, PetroChina Co Ltd is 1.82 times less risky than Shenzhen Silver. It trades about 0.28 of its potential returns per unit of risk. Shenzhen Silver Basis is currently generating about -0.12 per unit of risk. If you would invest 803.00 in PetroChina Co Ltd on September 26, 2024 and sell it today you would earn a total of 75.00 from holding PetroChina Co Ltd or generate 9.34% 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 Silver Basis
Performance |
| Timeline |
| PetroChina |
| Shenzhen Silver Basis |
PetroChina and Shenzhen Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Shenzhen Silver
The main advantage of trading using opposite PetroChina and Shenzhen Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Shenzhen Silver 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 Silver will offset losses from the drop in Shenzhen Silver's long position.| PetroChina vs. Zhejiang Kingland Pipeline | PetroChina vs. Jiangsu Zhongtian Technology | PetroChina vs. Shaanxi Beiyuan Chemical | PetroChina vs. Sinomine Resource Exploration |
| Shenzhen Silver vs. Bank of China | Shenzhen Silver vs. Kweichow Moutai Co | Shenzhen Silver vs. PetroChina Co Ltd | Shenzhen Silver vs. Bank of Communications |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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