Correlation Between PetroChina and Shanghai Pudong
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By analyzing existing cross correlation between PetroChina Co Ltd and Shanghai Pudong Development, you can compare the effects of market volatilities on PetroChina and Shanghai Pudong 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 Shanghai Pudong. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Shanghai Pudong.
Diversification Opportunities for PetroChina and Shanghai Pudong
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PetroChina and Shanghai is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Shanghai Pudong Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Pudong Deve 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 Shanghai Pudong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Pudong Deve has no effect on the direction of PetroChina i.e., PetroChina and Shanghai Pudong go up and down completely randomly.
Pair Corralation between PetroChina and Shanghai Pudong
Assuming the 90 days trading horizon PetroChina is expected to generate 2.03 times less return on investment than Shanghai Pudong. In addition to that, PetroChina is 1.61 times more volatile than Shanghai Pudong Development. It trades about 0.03 of its total potential returns per unit of risk. Shanghai Pudong Development is currently generating about 0.1 per unit of volatility. If you would invest 682.00 in Shanghai Pudong Development on August 26, 2024 and sell it today you would earn a total of 266.00 from holding Shanghai Pudong Development or generate 39.0% 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. Shanghai Pudong Development
Performance |
| Timeline |
| PetroChina |
| Shanghai Pudong Deve |
PetroChina and Shanghai Pudong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Shanghai Pudong
The main advantage of trading using opposite PetroChina and Shanghai Pudong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Shanghai Pudong 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 Shanghai Pudong will offset losses from the drop in Shanghai Pudong's long position.| PetroChina vs. Zhejiang Kingland Pipeline | PetroChina vs. COL Digital Publishing | PetroChina vs. Suzhou Novoprotein Scientific | PetroChina vs. Xiangyang Automobile Bearing |
| Shanghai Pudong vs. Fujian Longzhou Transportation | Shanghai Pudong vs. Tianshui Huatian Technology | Shanghai Pudong vs. Western Superconducting Tech | Shanghai Pudong vs. Saurer Intelligent 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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