Correlation Between Integrated Electronic and CNOOC
Specify exactly 2 symbols:
By analyzing existing cross correlation between Integrated Electronic Systems and CNOOC Limited, you can compare the effects of market volatilities on Integrated Electronic 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 Integrated Electronic with a short position of CNOOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Electronic and CNOOC.
Diversification Opportunities for Integrated Electronic and CNOOC
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Integrated and CNOOC is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Electronic Systems and CNOOC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNOOC Limited and Integrated Electronic 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 Integrated Electronic Systems 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 Integrated Electronic i.e., Integrated Electronic and CNOOC go up and down completely randomly.
Pair Corralation between Integrated Electronic and CNOOC
Assuming the 90 days trading horizon Integrated Electronic Systems is expected to generate 1.76 times more return on investment than CNOOC. However, Integrated Electronic is 1.76 times more volatile than CNOOC Limited. It trades about 0.06 of its potential returns per unit of risk. CNOOC Limited is currently generating about -0.21 per unit of risk. If you would invest 644.00 in Integrated Electronic Systems on November 4, 2024 and sell it today you would earn a total of 14.00 from holding Integrated Electronic Systems or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integrated Electronic Systems vs. CNOOC Limited
Performance |
| Timeline |
| Integrated Electronic |
| CNOOC Limited |
Integrated Electronic and CNOOC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Electronic and CNOOC
The main advantage of trading using opposite Integrated Electronic and CNOOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Electronic 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.The idea behind Integrated Electronic Systems and CNOOC Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| CNOOC vs. Shandong Longquan Pipeline | CNOOC vs. XinJiang GuoTong Pipeline | CNOOC vs. Chengdu Xinzhu RoadBridge | CNOOC vs. Sichuan Fulin Transportation |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |