Correlation Between China Nonferrous and CNOOC
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By analyzing existing cross correlation between China Nonferrous Metal and CNOOC Limited, you can compare the effects of market volatilities on China Nonferrous 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 China Nonferrous with a short position of CNOOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Nonferrous and CNOOC.
Diversification Opportunities for China Nonferrous and CNOOC
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and CNOOC is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding China Nonferrous Metal and CNOOC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNOOC Limited and China Nonferrous 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 China Nonferrous Metal 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 China Nonferrous i.e., China Nonferrous and CNOOC go up and down completely randomly.
Pair Corralation between China Nonferrous and CNOOC
Assuming the 90 days trading horizon China Nonferrous Metal is expected to under-perform the CNOOC. In addition to that, China Nonferrous is 1.56 times more volatile than CNOOC Limited. It trades about 0.0 of its total potential returns per unit of risk. CNOOC Limited is currently generating about 0.03 per unit of volatility. If you would invest 2,673 in CNOOC Limited on September 5, 2024 and sell it today you would earn a total of 17.00 from holding CNOOC Limited or generate 0.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Nonferrous Metal vs. CNOOC Limited
Performance |
| Timeline |
| China Nonferrous Metal |
| CNOOC Limited |
China Nonferrous and CNOOC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Nonferrous and CNOOC
The main advantage of trading using opposite China Nonferrous and CNOOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Nonferrous 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.| China Nonferrous vs. Zijin Mining Group | China Nonferrous vs. Wanhua Chemical Group | China Nonferrous vs. Baoshan Iron Steel | China Nonferrous vs. Shandong Gold Mining |
| CNOOC vs. Zhejiang Kingland Pipeline | CNOOC vs. Shenzhen Transsion Holdings | CNOOC vs. Fushun Special Steel | CNOOC vs. CITIC Securities 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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