Correlation Between Shenzhen SDG and CNOOC
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By analyzing existing cross correlation between Shenzhen SDG Information and CNOOC Limited, you can compare the effects of market volatilities on Shenzhen SDG and CNOOC 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 Shenzhen SDG with a short position of CNOOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen SDG and CNOOC.
Diversification Opportunities for Shenzhen SDG and CNOOC
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shenzhen and CNOOC is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen SDG Information and CNOOC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNOOC Limited and Shenzhen SDG 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 Shenzhen SDG Information are associated (or correlated) with CNOOC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNOOC Limited has no effect on the direction of Shenzhen SDG i.e., Shenzhen SDG and CNOOC go up and down completely randomly.
Pair Corralation between Shenzhen SDG and CNOOC
Assuming the 90 days trading horizon Shenzhen SDG Information is expected to under-perform the CNOOC. In addition to that, Shenzhen SDG is 1.41 times more volatile than CNOOC Limited. It trades about -0.29 of its total potential returns per unit of risk. CNOOC Limited is currently generating about 0.15 per unit of volatility. If you would invest 2,703 in CNOOC Limited on October 14, 2024 and sell it today you would earn a total of 122.00 from holding CNOOC Limited or generate 4.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen SDG Information vs. CNOOC Limited
Performance |
| Timeline |
| Shenzhen SDG Information |
| CNOOC Limited |
Shenzhen SDG and CNOOC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen SDG and CNOOC
The main advantage of trading using opposite Shenzhen SDG and CNOOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen SDG position performs unexpectedly, CNOOC 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 CNOOC will offset losses from the drop in CNOOC's long position.| Shenzhen SDG vs. China Building Material | Shenzhen SDG vs. Jilin OLED Material | Shenzhen SDG vs. Lontium Semiconductor Corp | Shenzhen SDG vs. Ningxia Building Materials |
| CNOOC vs. Beijing Mainstreets Investment | CNOOC vs. Shenzhen SDG Information | CNOOC vs. ButOne Information Corp | CNOOC vs. Hygon Information Technology |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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