Correlation Between Xiandai Investment and CNOOC
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By analyzing existing cross correlation between Xiandai Investment Co and CNOOC Limited, you can compare the effects of market volatilities on Xiandai Investment 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 Xiandai Investment with a short position of CNOOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiandai Investment and CNOOC.
Diversification Opportunities for Xiandai Investment and CNOOC
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xiandai and CNOOC is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Xiandai Investment Co and CNOOC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNOOC Limited and Xiandai Investment 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 Xiandai Investment Co 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 Xiandai Investment i.e., Xiandai Investment and CNOOC go up and down completely randomly.
Pair Corralation between Xiandai Investment and CNOOC
Assuming the 90 days trading horizon Xiandai Investment is expected to generate 9.95 times less return on investment than CNOOC. But when comparing it to its historical volatility, Xiandai Investment Co is 1.31 times less risky than CNOOC. It trades about 0.01 of its potential returns per unit of risk. CNOOC Limited is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,450 in CNOOC Limited on October 15, 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiandai Investment Co vs. CNOOC Limited
Performance |
| Timeline |
| Xiandai Investment |
| CNOOC Limited |
Xiandai Investment and CNOOC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiandai Investment and CNOOC
The main advantage of trading using opposite Xiandai Investment and CNOOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiandai Investment 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.| Xiandai Investment vs. Bingo Software Co | Xiandai Investment vs. China Publishing Media | Xiandai Investment vs. Shanghai Newtouch Software | Xiandai Investment vs. Guangzhou Jinyi Media |
| CNOOC vs. Tianjin Ruixin Technology | CNOOC vs. Zhongzhu Medical Holdings | CNOOC vs. Eyebright Medical Technology | CNOOC vs. Kingsignal Technology 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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