Correlation Between PetroChina and Shandong Sinoglory
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By analyzing existing cross correlation between PetroChina Co Ltd and Shandong Sinoglory Health, you can compare the effects of market volatilities on PetroChina and Shandong Sinoglory 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 Shandong Sinoglory. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Shandong Sinoglory.
Diversification Opportunities for PetroChina and Shandong Sinoglory
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Shandong is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Shandong Sinoglory Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sinoglory Health 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 Shandong Sinoglory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sinoglory Health has no effect on the direction of PetroChina i.e., PetroChina and Shandong Sinoglory go up and down completely randomly.
Pair Corralation between PetroChina and Shandong Sinoglory
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Shandong Sinoglory. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 2.36 times less risky than Shandong Sinoglory. The stock trades about -0.03 of its potential returns per unit of risk. The Shandong Sinoglory Health is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,168 in Shandong Sinoglory Health on September 1, 2024 and sell it today you would earn a total of 85.00 from holding Shandong Sinoglory Health or generate 7.28% 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. Shandong Sinoglory Health
Performance |
| Timeline |
| PetroChina |
| Shandong Sinoglory Health |
PetroChina and Shandong Sinoglory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Shandong Sinoglory
The main advantage of trading using opposite PetroChina and Shandong Sinoglory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Shandong Sinoglory 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 Shandong Sinoglory will offset losses from the drop in Shandong Sinoglory's long position.| PetroChina vs. Dongjiang Environmental Co | PetroChina vs. Tonghua Grape Wine | PetroChina vs. Dezhan HealthCare Co | PetroChina vs. Guangdong Liantai Environmental |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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