Correlation Between CITIC Securities and CNOOC
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By analyzing existing cross correlation between CITIC Securities Co and CNOOC Limited, you can compare the effects of market volatilities on CITIC Securities 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 CITIC Securities with a short position of CNOOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Securities and CNOOC.
Diversification Opportunities for CITIC Securities and CNOOC
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CITIC and CNOOC is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Securities Co and CNOOC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNOOC Limited and CITIC Securities 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 CITIC Securities Co 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 CITIC Securities i.e., CITIC Securities and CNOOC go up and down completely randomly.
Pair Corralation between CITIC Securities and CNOOC
Assuming the 90 days trading horizon CITIC Securities Co is expected to generate 2.7 times more return on investment than CNOOC. However, CITIC Securities is 2.7 times more volatile than CNOOC Limited. It trades about 0.11 of its potential returns per unit of risk. CNOOC Limited is currently generating about 0.03 per unit of risk. If you would invest 2,906 in CITIC Securities Co on September 5, 2024 and sell it today you would earn a total of 202.00 from holding CITIC Securities Co or generate 6.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Securities Co vs. CNOOC Limited
Performance |
| Timeline |
| CITIC Securities |
| CNOOC Limited |
CITIC Securities and CNOOC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Securities and CNOOC
The main advantage of trading using opposite CITIC Securities and CNOOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Securities 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.| CITIC Securities vs. Tianjin Silvery Dragon | CITIC Securities vs. Changjiang Jinggong Steel | CITIC Securities vs. Shandong Mining Machinery | CITIC Securities vs. Hang Xiao Steel |
| CNOOC vs. Zhejiang Kingland Pipeline | CNOOC vs. Shenzhen Transsion Holdings | CNOOC vs. Fushun Special Steel | CNOOC vs. CITIC Securities Co |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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