Correlation Between Bus Online and CNOOC
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By analyzing existing cross correlation between Bus Online Co and CNOOC Limited, you can compare the effects of market volatilities on Bus Online 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 Bus Online with a short position of CNOOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and CNOOC.
Diversification Opportunities for Bus Online and CNOOC
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bus and CNOOC is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online Co and CNOOC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNOOC Limited and Bus Online 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 Bus Online 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 Bus Online i.e., Bus Online and CNOOC go up and down completely randomly.
Pair Corralation between Bus Online and CNOOC
Assuming the 90 days trading horizon Bus Online Co is expected to under-perform the CNOOC. In addition to that, Bus Online 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 0.08 per unit of volatility. If you would invest 1,359 in CNOOC Limited on September 13, 2024 and sell it today you would earn a total of 1,377 from holding CNOOC Limited or generate 101.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bus Online Co vs. CNOOC Limited
Performance |
| Timeline |
| Bus Online |
| CNOOC Limited |
Bus Online and CNOOC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and CNOOC
The main advantage of trading using opposite Bus Online and CNOOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online 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.| Bus Online vs. Haima Automobile Group | Bus Online vs. BTG Hotels Group | Bus Online vs. Dongfeng Automobile Co | Bus Online vs. Changchun Faway Automobile |
| CNOOC vs. Hang Xiao Steel | CNOOC vs. Dongjiang Environmental Co | CNOOC vs. China World Trade | CNOOC vs. Shandong Iron and |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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