Correlation Between PetroChina and Shenzhen Hifuture
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By analyzing existing cross correlation between PetroChina Co Ltd and Shenzhen Hifuture Electric, you can compare the effects of market volatilities on PetroChina and Shenzhen Hifuture 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 Shenzhen Hifuture. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Shenzhen Hifuture.
Diversification Opportunities for PetroChina and Shenzhen Hifuture
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PetroChina and Shenzhen is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Shenzhen Hifuture Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Hifuture 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 Shenzhen Hifuture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Hifuture has no effect on the direction of PetroChina i.e., PetroChina and Shenzhen Hifuture go up and down completely randomly.
Pair Corralation between PetroChina and Shenzhen Hifuture
Assuming the 90 days trading horizon PetroChina is expected to generate 4.67 times less return on investment than Shenzhen Hifuture. But when comparing it to its historical volatility, PetroChina Co Ltd is 1.43 times less risky than Shenzhen Hifuture. It trades about 0.05 of its potential returns per unit of risk. Shenzhen Hifuture Electric is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 250.00 in Shenzhen Hifuture Electric on September 14, 2024 and sell it today you would earn a total of 81.00 from holding Shenzhen Hifuture Electric or generate 32.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 96.55% |
Values | Daily Returns |
PetroChina Co Ltd vs. Shenzhen Hifuture Electric
Performance |
Timeline |
PetroChina |
Shenzhen Hifuture |
PetroChina and Shenzhen Hifuture Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PetroChina and Shenzhen Hifuture
The main advantage of trading using opposite PetroChina and Shenzhen Hifuture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina position performs unexpectedly, Shenzhen Hifuture 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 Shenzhen Hifuture will offset losses from the drop in Shenzhen Hifuture's long position.PetroChina vs. Sportsoul Co Ltd | PetroChina vs. Dook Media Group | PetroChina vs. Focus Media Information | PetroChina vs. Wasu Media Holding |
Shenzhen Hifuture vs. Agricultural Bank of | Shenzhen Hifuture vs. Industrial and Commercial | Shenzhen Hifuture vs. Bank of China | Shenzhen Hifuture vs. PetroChina Co Ltd |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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