Correlation Between PetroChina and Zangge Holding
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By analyzing existing cross correlation between PetroChina Co Ltd and Zangge Holding Co, you can compare the effects of market volatilities on PetroChina and Zangge Holding 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 Zangge Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Zangge Holding.
Diversification Opportunities for PetroChina and Zangge Holding
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between PetroChina and Zangge is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Zangge Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zangge Holding 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 Zangge Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zangge Holding has no effect on the direction of PetroChina i.e., PetroChina and Zangge Holding go up and down completely randomly.
Pair Corralation between PetroChina and Zangge Holding
Assuming the 90 days trading horizon PetroChina is expected to generate 10.09 times less return on investment than Zangge Holding. But when comparing it to its historical volatility, PetroChina Co Ltd is 1.15 times less risky than Zangge Holding. It trades about 0.01 of its potential returns per unit of risk. Zangge Holding Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,475 in Zangge Holding Co on September 24, 2024 and sell it today you would earn a total of 233.00 from holding Zangge Holding Co or generate 9.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
PetroChina Co Ltd vs. Zangge Holding Co
Performance |
Timeline |
PetroChina |
Zangge Holding |
PetroChina and Zangge Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PetroChina and Zangge Holding
The main advantage of trading using opposite PetroChina and Zangge Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Zangge Holding 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 Zangge Holding will offset losses from the drop in Zangge Holding's long position.PetroChina vs. Zhejiang Kingland Pipeline | PetroChina vs. Jiangsu Zhongtian Technology | PetroChina vs. Shaanxi Beiyuan Chemical | PetroChina vs. Sinomine Resource Exploration |
Zangge Holding vs. PetroChina Co Ltd | Zangge Holding vs. China Mobile Limited | Zangge Holding vs. CNOOC Limited | Zangge Holding vs. Ping An Insurance |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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