Correlation Between PetroChina and Zhejiang Huayou
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By analyzing existing cross correlation between PetroChina Co Ltd and Zhejiang Huayou Cobalt, you can compare the effects of market volatilities on PetroChina and Zhejiang Huayou 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 Zhejiang Huayou. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Zhejiang Huayou.
Diversification Opportunities for PetroChina and Zhejiang Huayou
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PetroChina and Zhejiang is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Zhejiang Huayou Cobalt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Huayou Cobalt 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 Zhejiang Huayou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Huayou Cobalt has no effect on the direction of PetroChina i.e., PetroChina and Zhejiang Huayou go up and down completely randomly.
Pair Corralation between PetroChina and Zhejiang Huayou
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 0.79 times more return on investment than Zhejiang Huayou. However, PetroChina Co Ltd is 1.27 times less risky than Zhejiang Huayou. It trades about 0.07 of its potential returns per unit of risk. Zhejiang Huayou Cobalt is currently generating about -0.05 per unit of risk. If you would invest 506.00 in PetroChina Co Ltd on October 16, 2024 and sell it today you would earn a total of 381.00 from holding PetroChina Co Ltd or generate 75.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Zhejiang Huayou Cobalt
Performance |
| Timeline |
| PetroChina |
| Zhejiang Huayou Cobalt |
PetroChina and Zhejiang Huayou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Zhejiang Huayou
The main advantage of trading using opposite PetroChina and Zhejiang Huayou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Zhejiang Huayou 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 Zhejiang Huayou will offset losses from the drop in Zhejiang Huayou's long position.| PetroChina vs. Qingdao Foods Co | PetroChina vs. Hubeiyichang Transportation Group | PetroChina vs. Guangdong Wens Foodstuff | PetroChina vs. Youyou Foods Co |
| Zhejiang Huayou vs. Zijin Mining Group | Zhejiang Huayou vs. Wanhua Chemical Group | Zhejiang Huayou vs. Baoshan Iron Steel | Zhejiang Huayou vs. Shandong Gold Mining |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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