Correlation Between Guosheng Financial and CNOOC
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By analyzing existing cross correlation between Guosheng Financial Holding and CNOOC Limited, you can compare the effects of market volatilities on Guosheng Financial 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 Guosheng Financial with a short position of CNOOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guosheng Financial and CNOOC.
Diversification Opportunities for Guosheng Financial and CNOOC
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guosheng and CNOOC is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Guosheng Financial Holding and CNOOC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNOOC Limited and Guosheng Financial 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 Guosheng Financial Holding 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 Guosheng Financial i.e., Guosheng Financial and CNOOC go up and down completely randomly.
Pair Corralation between Guosheng Financial and CNOOC
Assuming the 90 days trading horizon Guosheng Financial is expected to generate 1.53 times less return on investment than CNOOC. In addition to that, Guosheng Financial is 1.65 times more volatile than CNOOC Limited. It trades about 0.03 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guosheng Financial Holding vs. CNOOC Limited
Performance |
| Timeline |
| Guosheng Financial |
| CNOOC Limited |
Guosheng Financial and CNOOC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guosheng Financial and CNOOC
The main advantage of trading using opposite Guosheng Financial and CNOOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guosheng Financial 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.| Guosheng Financial vs. BYD Co Ltd | Guosheng Financial vs. China Mobile Limited | Guosheng Financial vs. Agricultural Bank of | Guosheng Financial vs. Industrial and Commercial |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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