Correlation Between Minmetals Capital and CNOOC
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By analyzing existing cross correlation between Minmetals Capital Co and CNOOC Limited, you can compare the effects of market volatilities on Minmetals Capital 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 Minmetals Capital with a short position of CNOOC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minmetals Capital and CNOOC.
Diversification Opportunities for Minmetals Capital and CNOOC
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Minmetals and CNOOC is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Minmetals Capital Co and CNOOC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNOOC Limited and Minmetals Capital 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 Minmetals Capital 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 Minmetals Capital i.e., Minmetals Capital and CNOOC go up and down completely randomly.
Pair Corralation between Minmetals Capital and CNOOC
Assuming the 90 days trading horizon Minmetals Capital is expected to generate 3.67 times less return on investment than CNOOC. In addition to that, Minmetals Capital is 1.23 times more volatile than CNOOC Limited. It trades about 0.02 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 15, 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Minmetals Capital Co vs. CNOOC Limited
Performance |
| Timeline |
| Minmetals Capital |
| CNOOC Limited |
Minmetals Capital and CNOOC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minmetals Capital and CNOOC
The main advantage of trading using opposite Minmetals Capital and CNOOC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minmetals Capital 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.| Minmetals Capital vs. Tibet Huayu Mining | Minmetals Capital vs. Zijin Mining Group | Minmetals Capital vs. Guangdong Silvere Sci | Minmetals Capital vs. Fujian Oriental Silver |
| CNOOC vs. Tianjin Ruixin Technology | CNOOC vs. Zhongzhu Medical Holdings | CNOOC vs. Eyebright Medical Technology | CNOOC vs. Kingsignal Technology 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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