Correlation Between Global Ship and CNOOC
Can any of the company-specific risk be diversified away by investing in both Global Ship and CNOOC at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Global Ship and CNOOC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Ship Lease and CNOOC, you can compare the effects of market volatilities on Global Ship 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 Global Ship with a short position of CNOOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Ship and CNOOC.
Diversification Opportunities for Global Ship and CNOOC
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Global and CNOOC is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Global Ship Lease and CNOOC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNOOC and Global Ship 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 Global Ship Lease 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 has no effect on the direction of Global Ship i.e., Global Ship and CNOOC go up and down completely randomly.
Pair Corralation between Global Ship and CNOOC
If you would invest 2,076 in Global Ship Lease on October 9, 2024 and sell it today you would earn a total of 126.00 from holding Global Ship Lease or generate 6.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Ship Lease vs. CNOOC
Performance |
| Timeline |
| Global Ship Lease |
| CNOOC |
Global Ship and CNOOC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Ship and CNOOC
The main advantage of trading using opposite Global Ship and CNOOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Ship 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.| Global Ship vs. Nishi Nippon Railroad Co | Global Ship vs. Yuexiu Transport Infrastructure | Global Ship vs. TRAINLINE PLC LS | Global Ship vs. United Utilities Group |
| CNOOC vs. Salesforce | CNOOC vs. Tradegate AG Wertpapierhandelsbank | CNOOC vs. SIDETRADE EO 1 | CNOOC vs. Infrastrutture Wireless Italiane |
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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