Correlation Between PetroChina and Shandong Sanyuan
Specify exactly 2 symbols:
By analyzing existing cross correlation between PetroChina Co Ltd and Shandong Sanyuan Biotechnology, you can compare the effects of market volatilities on PetroChina and Shandong Sanyuan 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 Shandong Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Shandong Sanyuan.
Diversification Opportunities for PetroChina and Shandong Sanyuan
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PetroChina and Shandong is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Shandong Sanyuan Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sanyuan Bio 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 Shandong Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sanyuan Bio has no effect on the direction of PetroChina i.e., PetroChina and Shandong Sanyuan go up and down completely randomly.
Pair Corralation between PetroChina and Shandong Sanyuan
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.88 times more return on investment than Shandong Sanyuan. However, PetroChina Co Ltd is 1.13 times less risky than Shandong Sanyuan. It trades about 0.03 of its potential returns per unit of risk. Shandong Sanyuan Biotechnology is currently generating about 0.01 per unit of risk. If you would invest 756.00 in PetroChina Co Ltd on September 12, 2024 and sell it today you would earn a total of 80.00 from holding PetroChina Co Ltd or generate 10.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Shandong Sanyuan Biotechnology
Performance |
| Timeline |
| PetroChina |
| Shandong Sanyuan Bio |
PetroChina and Shandong Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Shandong Sanyuan
The main advantage of trading using opposite PetroChina and Shandong Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Shandong Sanyuan 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 Shandong Sanyuan will offset losses from the drop in Shandong Sanyuan's long position.| PetroChina vs. Digital China Information | PetroChina vs. DO Home Collection | PetroChina vs. Tongding Interconnection Information | PetroChina vs. Guangzhou Dongfang Hotel |
| Shandong Sanyuan vs. China Petroleum Chemical | Shandong Sanyuan vs. PetroChina Co Ltd | Shandong Sanyuan vs. China State Construction | Shandong Sanyuan vs. China Railway Group |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |