Correlation Between CNOOC and Shenwu Energy
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By analyzing existing cross correlation between CNOOC Limited and Shenwu Energy Saving, you can compare the effects of market volatilities on CNOOC and Shenwu Energy 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 CNOOC with a short position of Shenwu Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNOOC and Shenwu Energy.
Diversification Opportunities for CNOOC and Shenwu Energy
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CNOOC and Shenwu is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding CNOOC Limited and Shenwu Energy Saving in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenwu Energy Saving and CNOOC 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 CNOOC Limited are associated (or correlated) with Shenwu Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenwu Energy Saving has no effect on the direction of CNOOC i.e., CNOOC and Shenwu Energy go up and down completely randomly.
Pair Corralation between CNOOC and Shenwu Energy
Assuming the 90 days trading horizon CNOOC Limited is expected to under-perform the Shenwu Energy. But the stock apears to be less risky and, when comparing its historical volatility, CNOOC Limited is 3.21 times less risky than Shenwu Energy. The stock trades about -0.01 of its potential returns per unit of risk. The Shenwu Energy Saving is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 346.00 in Shenwu Energy Saving on October 24, 2024 and sell it today you would earn a total of 53.00 from holding Shenwu Energy Saving or generate 15.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNOOC Limited vs. Shenwu Energy Saving
Performance |
| Timeline |
| CNOOC Limited |
| Shenwu Energy Saving |
CNOOC and Shenwu Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNOOC and Shenwu Energy
The main advantage of trading using opposite CNOOC and Shenwu Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNOOC position performs unexpectedly, Shenwu Energy 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 Shenwu Energy will offset losses from the drop in Shenwu Energy's long position.| CNOOC vs. Montage Technology Co | CNOOC vs. Guosheng Financial Holding | CNOOC vs. Soyea Technology Co | CNOOC vs. Keda Clean Energy |
| Shenwu Energy vs. Easyhome New Retail | Shenwu Energy vs. Citic Offshore Helicopter | Shenwu Energy vs. Shenzhen AV Display Co | Shenwu Energy vs. Jinhui Liquor 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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