Correlation Between PetroChina and Henzhen Zhaowei
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By analyzing existing cross correlation between PetroChina Co Ltd and Henzhen Zhaowei Machinery, you can compare the effects of market volatilities on PetroChina and Henzhen Zhaowei 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 Henzhen Zhaowei. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Henzhen Zhaowei.
Diversification Opportunities for PetroChina and Henzhen Zhaowei
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Henzhen is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Henzhen Zhaowei Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henzhen Zhaowei Machinery 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 Henzhen Zhaowei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henzhen Zhaowei Machinery has no effect on the direction of PetroChina i.e., PetroChina and Henzhen Zhaowei go up and down completely randomly.
Pair Corralation between PetroChina and Henzhen Zhaowei
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Henzhen Zhaowei. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 6.65 times less risky than Henzhen Zhaowei. The stock trades about -0.41 of its potential returns per unit of risk. The Henzhen Zhaowei Machinery is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest 9,325 in Henzhen Zhaowei Machinery on November 27, 2024 and sell it today you would earn a total of 3,749 from holding Henzhen Zhaowei Machinery or generate 40.2% 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. Henzhen Zhaowei Machinery
Performance |
| Timeline |
| PetroChina |
| Henzhen Zhaowei Machinery |
PetroChina and Henzhen Zhaowei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Henzhen Zhaowei
The main advantage of trading using opposite PetroChina and Henzhen Zhaowei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Henzhen Zhaowei 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 Henzhen Zhaowei will offset losses from the drop in Henzhen Zhaowei's long position.| PetroChina vs. Xinxiang Chemical Fiber | PetroChina vs. Duzhe Publishing Media | PetroChina vs. Mega info Media CoLtd | PetroChina vs. Longxing Chemical Stock |
| Henzhen Zhaowei vs. Shenzhen Zqgame | Henzhen Zhaowei vs. Highbroad Advanced Material | Henzhen Zhaowei vs. Hua Xia Bank | Henzhen Zhaowei vs. Xinjiang Beixin RoadBridge |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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