Correlation Between PetroChina and Shenzhen Zhongzhuang
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By analyzing existing cross correlation between PetroChina Co Ltd and Shenzhen Zhongzhuang Construction, you can compare the effects of market volatilities on PetroChina and Shenzhen Zhongzhuang 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 Zhongzhuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Shenzhen Zhongzhuang.
Diversification Opportunities for PetroChina and Shenzhen Zhongzhuang
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Shenzhen is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Shenzhen Zhongzhuang Construct in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Zhongzhuang 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 Zhongzhuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Zhongzhuang has no effect on the direction of PetroChina i.e., PetroChina and Shenzhen Zhongzhuang go up and down completely randomly.
Pair Corralation between PetroChina and Shenzhen Zhongzhuang
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.64 times more return on investment than Shenzhen Zhongzhuang. However, PetroChina Co Ltd is 1.56 times less risky than Shenzhen Zhongzhuang. It trades about 0.06 of its potential returns per unit of risk. Shenzhen Zhongzhuang Construction is currently generating about 0.0 per unit of risk. If you would invest 504.00 in PetroChina Co Ltd on August 28, 2024 and sell it today you would earn a total of 299.00 from holding PetroChina Co Ltd or generate 59.33% 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. Shenzhen Zhongzhuang Construct
Performance |
| Timeline |
| PetroChina |
| Shenzhen Zhongzhuang |
PetroChina and Shenzhen Zhongzhuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Shenzhen Zhongzhuang
The main advantage of trading using opposite PetroChina and Shenzhen Zhongzhuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Shenzhen Zhongzhuang 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 Zhongzhuang will offset losses from the drop in Shenzhen Zhongzhuang's long position.| PetroChina vs. Sunwave Communications Co | PetroChina vs. City Development Environment | PetroChina vs. Gansu Jiu Steel | PetroChina vs. GreenTech Environmental Co |
| Shenzhen Zhongzhuang vs. Ming Yang Smart | Shenzhen Zhongzhuang vs. 159681 | Shenzhen Zhongzhuang vs. 159005 | Shenzhen Zhongzhuang vs. Loctek Ergonomic Technology |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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