Correlation Between Zhongshan Broad and CNOOC
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By analyzing existing cross correlation between Zhongshan Broad Ocean Motor and CNOOC Limited, you can compare the effects of market volatilities on Zhongshan Broad 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 Zhongshan Broad with a short position of CNOOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongshan Broad and CNOOC.
Diversification Opportunities for Zhongshan Broad and CNOOC
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Zhongshan and CNOOC is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Zhongshan Broad Ocean Motor and CNOOC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNOOC Limited and Zhongshan Broad 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 Zhongshan Broad Ocean Motor 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 Zhongshan Broad i.e., Zhongshan Broad and CNOOC go up and down completely randomly.
Pair Corralation between Zhongshan Broad and CNOOC
Assuming the 90 days trading horizon Zhongshan Broad Ocean Motor is expected to generate 2.12 times more return on investment than CNOOC. However, Zhongshan Broad is 2.12 times more volatile than CNOOC Limited. It trades about 0.03 of its potential returns per unit of risk. CNOOC Limited is currently generating about -0.16 per unit of risk. If you would invest 576.00 in Zhongshan Broad Ocean Motor on October 26, 2024 and sell it today you would earn a total of 4.00 from holding Zhongshan Broad Ocean Motor or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongshan Broad Ocean Motor vs. CNOOC Limited
Performance |
| Timeline |
| Zhongshan Broad Ocean |
| CNOOC Limited |
Zhongshan Broad and CNOOC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongshan Broad and CNOOC
The main advantage of trading using opposite Zhongshan Broad and CNOOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongshan Broad 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.| Zhongshan Broad vs. Xilong Chemical Co | Zhongshan Broad vs. Lianhe Chemical Technology | Zhongshan Broad vs. Guangzhou Zhujiang Brewery | Zhongshan Broad vs. Liaoning Dingjide Petrochemical |
| CNOOC vs. Guangzhou Zhujiang Brewery | CNOOC vs. Hunan TV Broadcast | CNOOC vs. Shanghai Jinfeng Wine | CNOOC vs. Zhongshan Broad Ocean Motor |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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