Correlation Between Shanghai Action and PetroChina
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By analyzing existing cross correlation between Shanghai Action Education and PetroChina Co Ltd, you can compare the effects of market volatilities on Shanghai Action 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 Shanghai Action with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Action and PetroChina.
Diversification Opportunities for Shanghai Action and PetroChina
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shanghai and PetroChina is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Action Education and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Shanghai Action 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 Shanghai Action Education 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 Shanghai Action i.e., Shanghai Action and PetroChina go up and down completely randomly.
Pair Corralation between Shanghai Action and PetroChina
Assuming the 90 days trading horizon Shanghai Action Education is expected to generate 3.61 times more return on investment than PetroChina. However, Shanghai Action is 3.61 times more volatile than PetroChina Co Ltd. It trades about 0.09 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.11 per unit of risk. If you would invest 3,419 in Shanghai Action Education on September 3, 2024 and sell it today you would earn a total of 155.00 from holding Shanghai Action Education or generate 4.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Action Education vs. PetroChina Co Ltd
Performance |
| Timeline |
| Shanghai Action Education |
| PetroChina |
Shanghai Action and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Action and PetroChina
The main advantage of trading using opposite Shanghai Action and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Action 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.| Shanghai Action vs. PetroChina Co Ltd | Shanghai Action vs. China Mobile Limited | Shanghai Action vs. Industrial and Commercial | Shanghai Action vs. China Life Insurance |
| PetroChina vs. China Express Airlines | PetroChina vs. Xinhua Winshare Publishing | PetroChina vs. Jinhui Liquor Co | PetroChina vs. Beijing Kaiwen Education |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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