Correlation Between PetroChina and Shanghai Jin
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By analyzing existing cross correlation between PetroChina Co Ltd and Shanghai Jin Jiang, you can compare the effects of market volatilities on PetroChina and Shanghai Jin 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 Jin. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Shanghai Jin.
Diversification Opportunities for PetroChina and Shanghai Jin
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PetroChina and Shanghai is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Shanghai Jin Jiang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jin Jiang 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 Jin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jin Jiang has no effect on the direction of PetroChina i.e., PetroChina and Shanghai Jin go up and down completely randomly.
Pair Corralation between PetroChina and Shanghai Jin
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to generate 1.78 times more return on investment than Shanghai Jin. However, PetroChina is 1.78 times more volatile than Shanghai Jin Jiang. It trades about 0.28 of its potential returns per unit of risk. Shanghai Jin Jiang is currently generating about -0.07 per unit of risk. If you would invest 803.00 in PetroChina Co Ltd on September 25, 2024 and sell it today you would earn a total of 75.00 from holding PetroChina Co Ltd or generate 9.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
PetroChina Co Ltd vs. Shanghai Jin Jiang
Performance |
Timeline |
PetroChina |
Shanghai Jin Jiang |
PetroChina and Shanghai Jin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PetroChina and Shanghai Jin
The main advantage of trading using opposite PetroChina and Shanghai Jin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Shanghai Jin 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 Jin will offset losses from the drop in Shanghai Jin's long position.PetroChina vs. Xinjiang Baodi Mining | PetroChina vs. Guocheng Mining Co | PetroChina vs. Huaibei Mining Holdings | PetroChina vs. Fujian Oriental Silver |
Shanghai Jin vs. Bank of China | Shanghai Jin vs. Kweichow Moutai Co | Shanghai Jin vs. PetroChina Co Ltd | Shanghai Jin vs. Bank of Communications |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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