Correlation Between PetroChina and Zhongtai Securities
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By analyzing existing cross correlation between PetroChina Co Ltd and Zhongtai Securities Co, you can compare the effects of market volatilities on PetroChina and Zhongtai Securities 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 Zhongtai Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Zhongtai Securities.
Diversification Opportunities for PetroChina and Zhongtai Securities
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PetroChina and Zhongtai is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Zhongtai Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtai Securities 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 Zhongtai Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtai Securities has no effect on the direction of PetroChina i.e., PetroChina and Zhongtai Securities go up and down completely randomly.
Pair Corralation between PetroChina and Zhongtai Securities
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 1.04 times more return on investment than Zhongtai Securities. However, PetroChina is 1.04 times more volatile than Zhongtai Securities Co. It trades about -0.18 of its potential returns per unit of risk. Zhongtai Securities Co is currently generating about -0.28 per unit of risk. If you would invest 878.00 in PetroChina Co Ltd on October 25, 2024 and sell it today you would lose (55.00) from holding PetroChina Co Ltd or give up 6.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Zhongtai Securities Co
Performance |
| Timeline |
| PetroChina |
| Zhongtai Securities |
PetroChina and Zhongtai Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Zhongtai Securities
The main advantage of trading using opposite PetroChina and Zhongtai Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Zhongtai Securities 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 Zhongtai Securities will offset losses from the drop in Zhongtai Securities' long position.| PetroChina vs. Anji Foodstuff Co | PetroChina vs. Puya Semiconductor Shanghai | PetroChina vs. Great Sun Foods Co | PetroChina vs. GRINM Semiconductor Materials |
| Zhongtai Securities vs. De Rucci Healthy | Zhongtai Securities vs. Lotus Health Group | Zhongtai Securities vs. Andon Health Co | Zhongtai Securities vs. Shenzhen Centralcon 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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