Correlation Between PetroChina and Shanghai Zhangjiang
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By analyzing existing cross correlation between PetroChina Co Ltd and Shanghai Zhangjiang Hi Tech, you can compare the effects of market volatilities on PetroChina and Shanghai Zhangjiang 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 Zhangjiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Shanghai Zhangjiang.
Diversification Opportunities for PetroChina and Shanghai Zhangjiang
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Shanghai is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Shanghai Zhangjiang Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Zhangjiang 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 Zhangjiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Zhangjiang has no effect on the direction of PetroChina i.e., PetroChina and Shanghai Zhangjiang go up and down completely randomly.
Pair Corralation between PetroChina and Shanghai Zhangjiang
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Shanghai Zhangjiang. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 4.6 times less risky than Shanghai Zhangjiang. The stock trades about -0.17 of its potential returns per unit of risk. The Shanghai Zhangjiang Hi Tech is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,657 in Shanghai Zhangjiang Hi Tech on August 29, 2024 and sell it today you would earn a total of 145.00 from holding Shanghai Zhangjiang Hi Tech or generate 5.46% 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. Shanghai Zhangjiang Hi Tech
Performance |
| Timeline |
| PetroChina |
| Shanghai Zhangjiang |
PetroChina and Shanghai Zhangjiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Shanghai Zhangjiang
The main advantage of trading using opposite PetroChina and Shanghai Zhangjiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Shanghai Zhangjiang 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 Zhangjiang will offset losses from the drop in Shanghai Zhangjiang's long position.| PetroChina vs. Guilin Seamild Foods | PetroChina vs. Great Sun Foods Co | PetroChina vs. Jiahe Foods Industry | PetroChina vs. Lander Sports Development |
| Shanghai Zhangjiang vs. Uxi Unicomp Technology | Shanghai Zhangjiang vs. Tianshui Huatian Technology | Shanghai Zhangjiang vs. 360 Security Technology | Shanghai Zhangjiang vs. Dhc Software Co |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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