Correlation Between PetroChina and Shanghai Ziyan
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By analyzing existing cross correlation between PetroChina Co Ltd and Shanghai Ziyan Foods, you can compare the effects of market volatilities on PetroChina and Shanghai Ziyan 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 Ziyan. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Shanghai Ziyan.
Diversification Opportunities for PetroChina and Shanghai Ziyan
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PetroChina and Shanghai is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Shanghai Ziyan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Ziyan Foods 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 Ziyan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Ziyan Foods has no effect on the direction of PetroChina i.e., PetroChina and Shanghai Ziyan go up and down completely randomly.
Pair Corralation between PetroChina and Shanghai Ziyan
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.68 times more return on investment than Shanghai Ziyan. However, PetroChina Co Ltd is 1.46 times less risky than Shanghai Ziyan. It trades about -0.21 of its potential returns per unit of risk. Shanghai Ziyan Foods is currently generating about -0.2 per unit of risk. If you would invest 885.00 in PetroChina Co Ltd on November 4, 2024 and sell it today you would lose (52.00) from holding PetroChina Co Ltd or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Shanghai Ziyan Foods
Performance |
| Timeline |
| PetroChina |
| Shanghai Ziyan Foods |
PetroChina and Shanghai Ziyan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Shanghai Ziyan
The main advantage of trading using opposite PetroChina and Shanghai Ziyan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Shanghai Ziyan 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 Ziyan will offset losses from the drop in Shanghai Ziyan's long position.| PetroChina vs. Anhui Deli Household | PetroChina vs. Liaoning Chengda Biotechnology | PetroChina vs. Beijing Baolande Software | PetroChina vs. Anhui Huaheng Biotechnology |
| Shanghai Ziyan vs. Xiandai Investment Co | Shanghai Ziyan vs. Henan Shuanghui Investment | Shanghai Ziyan vs. Shenyang Huitian Thermal | Shanghai Ziyan 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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