Correlation Between PetroChina and Zhuzhou Kibing
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By analyzing existing cross correlation between PetroChina Co Ltd and Zhuzhou Kibing Group, you can compare the effects of market volatilities on PetroChina and Zhuzhou Kibing 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 Zhuzhou Kibing. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Zhuzhou Kibing.
Diversification Opportunities for PetroChina and Zhuzhou Kibing
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Zhuzhou is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Zhuzhou Kibing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuzhou Kibing Group 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 Zhuzhou Kibing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuzhou Kibing Group has no effect on the direction of PetroChina i.e., PetroChina and Zhuzhou Kibing go up and down completely randomly.
Pair Corralation between PetroChina and Zhuzhou Kibing
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Zhuzhou Kibing. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 1.49 times less risky than Zhuzhou Kibing. The stock trades about -0.01 of its potential returns per unit of risk. The Zhuzhou Kibing Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 507.00 in Zhuzhou Kibing Group on December 4, 2024 and sell it today you would earn a total of 83.00 from holding Zhuzhou Kibing Group or generate 16.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.13% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Zhuzhou Kibing Group
Performance |
| Timeline |
| PetroChina |
| Zhuzhou Kibing Group |
PetroChina and Zhuzhou Kibing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Zhuzhou Kibing
The main advantage of trading using opposite PetroChina and Zhuzhou Kibing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Zhuzhou Kibing 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 Zhuzhou Kibing will offset losses from the drop in Zhuzhou Kibing's long position.| PetroChina vs. Guangdong Wens Foodstuff | PetroChina vs. Bomin Electronics Co | PetroChina vs. Aurora Optoelectronics Co | PetroChina vs. Xiwang Foodstuffs Co |
| Zhuzhou Kibing vs. Soyea Technology Co | Zhuzhou Kibing vs. MayAir Technology Co | Zhuzhou Kibing vs. Jiaozuo Wanfang Aluminum | Zhuzhou Kibing vs. Montage Technology 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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