Correlation Between Xiangyang Automobile and CNOOC
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and CNOOC Limited, you can compare the effects of market volatilities on Xiangyang Automobile 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 Xiangyang Automobile with a short position of CNOOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and CNOOC.
Diversification Opportunities for Xiangyang Automobile and CNOOC
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xiangyang and CNOOC is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and CNOOC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNOOC Limited and Xiangyang Automobile 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 Xiangyang Automobile Bearing 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 Xiangyang Automobile i.e., Xiangyang Automobile and CNOOC go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and CNOOC
Assuming the 90 days trading horizon Xiangyang Automobile is expected to generate 4.19 times less return on investment than CNOOC. In addition to that, Xiangyang Automobile is 1.69 times more volatile than CNOOC Limited. It trades about 0.01 of its total potential returns per unit of risk. CNOOC Limited is currently generating about 0.07 per unit of volatility. If you would invest 1,462 in CNOOC Limited on August 29, 2024 and sell it today you would earn a total of 1,150 from holding CNOOC Limited or generate 78.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyang Automobile Bearing vs. CNOOC Limited
Performance |
| Timeline |
| Xiangyang Automobile |
| CNOOC Limited |
Xiangyang Automobile and CNOOC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and CNOOC
The main advantage of trading using opposite Xiangyang Automobile and CNOOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile 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.| Xiangyang Automobile vs. Loongson Technology Corp | Xiangyang Automobile vs. Chongqing Road Bridge | Xiangyang Automobile vs. Shenzhen Fortune Trend | Xiangyang Automobile vs. Wuhan Xianglong Power |
| CNOOC vs. Zhejiang Kingland Pipeline | CNOOC vs. Xiangyang Automobile Bearing | CNOOC vs. BYD Co Ltd | CNOOC vs. Southern PublishingMedia 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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