Correlation Between China Minmetals and CNOOC
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By analyzing existing cross correlation between China Minmetals Rare and CNOOC Limited, you can compare the effects of market volatilities on China Minmetals 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 Minmetals with a short position of CNOOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Minmetals and CNOOC.
Diversification Opportunities for China Minmetals and CNOOC
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and CNOOC is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding China Minmetals Rare and CNOOC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNOOC Limited and China Minmetals 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 Minmetals Rare 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 Minmetals i.e., China Minmetals and CNOOC go up and down completely randomly.
Pair Corralation between China Minmetals and CNOOC
Assuming the 90 days trading horizon China Minmetals Rare is expected to under-perform the CNOOC. In addition to that, China Minmetals is 1.25 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 1,450 in CNOOC Limited on October 13, 2024 and sell it today you would earn a total of 1,375 from holding CNOOC Limited or generate 94.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Minmetals Rare vs. CNOOC Limited
Performance |
| Timeline |
| China Minmetals Rare |
| CNOOC Limited |
China Minmetals and CNOOC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Minmetals and CNOOC
The main advantage of trading using opposite China Minmetals and CNOOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Minmetals 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 Minmetals vs. Zijin Mining Group | China Minmetals vs. Wanhua Chemical Group | China Minmetals vs. Baoshan Iron Steel | China Minmetals vs. Shandong Gold Mining |
| CNOOC vs. Ningbo Tech Bank Co | CNOOC vs. Guosheng Financial Holding | CNOOC vs. China Minmetals Rare | CNOOC vs. GRG Banking Equipment |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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