Correlation Between Beijing Mainstreets and CNOOC
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By analyzing existing cross correlation between Beijing Mainstreets Investment and CNOOC Limited, you can compare the effects of market volatilities on Beijing Mainstreets 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 Beijing Mainstreets with a short position of CNOOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Mainstreets and CNOOC.
Diversification Opportunities for Beijing Mainstreets and CNOOC
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beijing and CNOOC is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Mainstreets Investment and CNOOC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNOOC Limited and Beijing Mainstreets 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 Beijing Mainstreets Investment 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 Beijing Mainstreets i.e., Beijing Mainstreets and CNOOC go up and down completely randomly.
Pair Corralation between Beijing Mainstreets and CNOOC
Assuming the 90 days trading horizon Beijing Mainstreets Investment is expected to under-perform the CNOOC. In addition to that, Beijing Mainstreets is 2.03 times more volatile than CNOOC Limited. It trades about -0.02 of its total potential returns per unit of risk. CNOOC Limited is currently generating about 0.08 per unit of volatility. If you would invest 1,444 in CNOOC Limited on October 29, 2024 and sell it today you would earn a total of 1,278 from holding CNOOC Limited or generate 88.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Mainstreets Investment vs. CNOOC Limited
Performance |
| Timeline |
| Beijing Mainstreets |
| CNOOC Limited |
Beijing Mainstreets and CNOOC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Mainstreets and CNOOC
The main advantage of trading using opposite Beijing Mainstreets and CNOOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Mainstreets 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.| Beijing Mainstreets vs. Guotai Epoint Software | Beijing Mainstreets vs. Guangzhou Dongfang Hotel | Beijing Mainstreets vs. Shanghai Yanpu Metal | Beijing Mainstreets vs. Fujian Boss Software |
| CNOOC vs. Panda Dairy Corp | CNOOC vs. Ligao Foods CoLtd | CNOOC vs. Xinjiang Baodi Mining | CNOOC vs. Xiangpiaopiao Food Co |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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