Correlation Between Zijin Mining and PetroChina
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By analyzing existing cross correlation between Zijin Mining Group and PetroChina Co Ltd, you can compare the effects of market volatilities on Zijin Mining and PetroChina 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 Zijin Mining with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and PetroChina.
Diversification Opportunities for Zijin Mining and PetroChina
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zijin and PetroChina is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Zijin Mining 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 Zijin Mining Group are associated (or correlated) with PetroChina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PetroChina has no effect on the direction of Zijin Mining i.e., Zijin Mining and PetroChina go up and down completely randomly.
Pair Corralation between Zijin Mining and PetroChina
Assuming the 90 days trading horizon Zijin Mining Group is expected to generate 1.1 times more return on investment than PetroChina. However, Zijin Mining is 1.1 times more volatile than PetroChina Co Ltd. It trades about 0.22 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.17 per unit of risk. If you would invest 1,518 in Zijin Mining Group on November 3, 2024 and sell it today you would earn a total of 106.00 from holding Zijin Mining Group or generate 6.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zijin Mining Group vs. PetroChina Co Ltd
Performance |
| Timeline |
| Zijin Mining Group |
| PetroChina |
Zijin Mining and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and PetroChina
The main advantage of trading using opposite Zijin Mining and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining position performs unexpectedly, PetroChina 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 PetroChina will offset losses from the drop in PetroChina's long position.| Zijin Mining vs. Fiberhome Telecommunication Technologies | Zijin Mining vs. Tongyu Communication | Zijin Mining vs. Changjiang Publishing Media | Zijin Mining vs. Allwin Telecommunication Co |
| PetroChina vs. Guangdong Transtek Medical | PetroChina vs. Xiangyu Medical Co | PetroChina vs. Shenzhen Glory Medical | PetroChina vs. Allgens Medical Technology |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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