Correlation Between Vats Liquor and CNOOC
Specify exactly 2 symbols:
By analyzing existing cross correlation between Vats Liquor Chain and CNOOC Limited, you can compare the effects of market volatilities on Vats Liquor 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 Vats Liquor with a short position of CNOOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vats Liquor and CNOOC.
Diversification Opportunities for Vats Liquor and CNOOC
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vats and CNOOC is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Vats Liquor Chain and CNOOC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNOOC Limited and Vats Liquor 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 Vats Liquor Chain 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 Vats Liquor i.e., Vats Liquor and CNOOC go up and down completely randomly.
Pair Corralation between Vats Liquor and CNOOC
Assuming the 90 days trading horizon Vats Liquor Chain is expected to generate 2.01 times more return on investment than CNOOC. However, Vats Liquor is 2.01 times more volatile than CNOOC Limited. It trades about 0.24 of its potential returns per unit of risk. CNOOC Limited is currently generating about -0.16 per unit of risk. If you would invest 1,539 in Vats Liquor Chain on November 7, 2024 and sell it today you would earn a total of 182.00 from holding Vats Liquor Chain or generate 11.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vats Liquor Chain vs. CNOOC Limited
Performance |
| Timeline |
| Vats Liquor Chain |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CNOOC Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Vats Liquor and CNOOC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vats Liquor and CNOOC
The main advantage of trading using opposite Vats Liquor and CNOOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vats Liquor 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 Vats Liquor Chain 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.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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |