Correlation Between PetroChina and ShuYu Civilian
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By analyzing existing cross correlation between PetroChina Co Ltd and ShuYu Civilian Pharmacy, you can compare the effects of market volatilities on PetroChina and ShuYu Civilian 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 ShuYu Civilian. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and ShuYu Civilian.
Diversification Opportunities for PetroChina and ShuYu Civilian
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PetroChina and ShuYu is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and ShuYu Civilian Pharmacy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ShuYu Civilian Pharmacy 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 ShuYu Civilian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ShuYu Civilian Pharmacy has no effect on the direction of PetroChina i.e., PetroChina and ShuYu Civilian go up and down completely randomly.
Pair Corralation between PetroChina and ShuYu Civilian
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the ShuYu Civilian. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 1.21 times less risky than ShuYu Civilian. The stock trades about -0.25 of its potential returns per unit of risk. The ShuYu Civilian Pharmacy is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 1,144 in ShuYu Civilian Pharmacy on November 7, 2024 and sell it today you would lose (30.00) from holding ShuYu Civilian Pharmacy or give up 2.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. ShuYu Civilian Pharmacy
Performance |
| Timeline |
| PetroChina |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ShuYu Civilian Pharmacy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PetroChina and ShuYu Civilian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and ShuYu Civilian
The main advantage of trading using opposite PetroChina and ShuYu Civilian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, ShuYu Civilian 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 ShuYu Civilian will offset losses from the drop in ShuYu Civilian's long position.The idea behind PetroChina Co Ltd and ShuYu Civilian Pharmacy pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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