Correlation Between PetroChina and Zhengping RoadBridge
Specify exactly 2 symbols:
By analyzing existing cross correlation between PetroChina Co Ltd and Zhengping RoadBridge Constr, you can compare the effects of market volatilities on PetroChina and Zhengping RoadBridge 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 Zhengping RoadBridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Zhengping RoadBridge.
Diversification Opportunities for PetroChina and Zhengping RoadBridge
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between PetroChina and Zhengping is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Zhengping RoadBridge Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengping RoadBridge 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 Zhengping RoadBridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengping RoadBridge has no effect on the direction of PetroChina i.e., PetroChina and Zhengping RoadBridge go up and down completely randomly.
Pair Corralation between PetroChina and Zhengping RoadBridge
Assuming the 90 days trading horizon PetroChina is expected to generate 5.4 times less return on investment than Zhengping RoadBridge. But when comparing it to its historical volatility, PetroChina Co Ltd is 1.89 times less risky than Zhengping RoadBridge. It trades about 0.07 of its potential returns per unit of risk. Zhengping RoadBridge Constr is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 246.00 in Zhengping RoadBridge Constr on September 12, 2024 and sell it today you would earn a total of 129.00 from holding Zhengping RoadBridge Constr or generate 52.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.28% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Zhengping RoadBridge Constr
Performance |
| Timeline |
| PetroChina |
| Zhengping RoadBridge |
PetroChina and Zhengping RoadBridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Zhengping RoadBridge
The main advantage of trading using opposite PetroChina and Zhengping RoadBridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Zhengping RoadBridge 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 Zhengping RoadBridge will offset losses from the drop in Zhengping RoadBridge's long position.| PetroChina vs. Ningxia Building Materials | PetroChina vs. Chongqing Sulian Plastic | PetroChina vs. Guangzhou Tinci Materials | PetroChina vs. Tianjin Pengling Rubber |
| Zhengping RoadBridge vs. Long Yuan Construction | Zhengping RoadBridge vs. Hongrun Construction Group | Zhengping RoadBridge vs. Ningxia Younglight Chemicals | Zhengping RoadBridge vs. Easyhome New Retail |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |