Correlation Between PetroChina and Shanghai Yanpu
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By analyzing existing cross correlation between PetroChina Co Ltd and Shanghai Yanpu Metal, you can compare the effects of market volatilities on PetroChina and Shanghai Yanpu 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 Yanpu. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Shanghai Yanpu.
Diversification Opportunities for PetroChina and Shanghai Yanpu
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Shanghai is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Shanghai Yanpu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yanpu Metal 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 Yanpu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yanpu Metal has no effect on the direction of PetroChina i.e., PetroChina and Shanghai Yanpu go up and down completely randomly.
Pair Corralation between PetroChina and Shanghai Yanpu
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Shanghai Yanpu. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 3.95 times less risky than Shanghai Yanpu. The stock trades about -0.12 of its potential returns per unit of risk. The Shanghai Yanpu Metal is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,767 in Shanghai Yanpu Metal on September 4, 2024 and sell it today you would earn a total of 169.00 from holding Shanghai Yanpu Metal or generate 4.49% 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. Shanghai Yanpu Metal
Performance |
| Timeline |
| PetroChina |
| Shanghai Yanpu Metal |
PetroChina and Shanghai Yanpu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Shanghai Yanpu
The main advantage of trading using opposite PetroChina and Shanghai Yanpu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Shanghai Yanpu 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 Yanpu will offset losses from the drop in Shanghai Yanpu's long position.| PetroChina vs. Sichuan Hebang Biotechnology | PetroChina vs. Guangdong Marubi Biotechnology | PetroChina vs. Shandong Sanyuan Biotechnology | PetroChina vs. Bloomage Biotechnology Corp |
| Shanghai Yanpu vs. Dhc Software Co | Shanghai Yanpu vs. Inspur Software Co | Shanghai Yanpu vs. Keda Clean Energy | Shanghai Yanpu vs. Glodon Software 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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