Correlation Between Dazhong Transportation and PetroChina
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By analyzing existing cross correlation between Dazhong Transportation Group and PetroChina Co Ltd, you can compare the effects of market volatilities on Dazhong Transportation 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 Dazhong Transportation with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dazhong Transportation and PetroChina.
Diversification Opportunities for Dazhong Transportation and PetroChina
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dazhong and PetroChina is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Dazhong Transportation Group and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Dazhong Transportation 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 Dazhong Transportation 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 Dazhong Transportation i.e., Dazhong Transportation and PetroChina go up and down completely randomly.
Pair Corralation between Dazhong Transportation and PetroChina
Assuming the 90 days trading horizon Dazhong Transportation is expected to generate 3.51 times less return on investment than PetroChina. In addition to that, Dazhong Transportation is 1.33 times more volatile than PetroChina Co Ltd. It trades about 0.01 of its total potential returns per unit of risk. PetroChina Co Ltd is currently generating about 0.05 per unit of volatility. If you would invest 541.00 in PetroChina Co Ltd on November 27, 2024 and sell it today you would earn a total of 249.00 from holding PetroChina Co Ltd or generate 46.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dazhong Transportation Group vs. PetroChina Co Ltd
Performance |
| Timeline |
| Dazhong Transportation |
| PetroChina |
Dazhong Transportation and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dazhong Transportation and PetroChina
The main advantage of trading using opposite Dazhong Transportation and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dazhong Transportation 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.| Dazhong Transportation vs. Nanxing Furniture Machinery | Dazhong Transportation vs. Cicc Fund Management | Dazhong Transportation vs. Markor International Home | Dazhong Transportation vs. Zoy Home Furnishing |
| PetroChina vs. Xinxiang Chemical Fiber | PetroChina vs. Duzhe Publishing Media | PetroChina vs. Mega info Media CoLtd | PetroChina vs. Longxing Chemical Stock |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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