Correlation Between CNOOC and Soyea Technology
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By analyzing existing cross correlation between CNOOC Limited and Soyea Technology Co, you can compare the effects of market volatilities on CNOOC and Soyea Technology 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 Soyea Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNOOC and Soyea Technology.
Diversification Opportunities for CNOOC and Soyea Technology
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CNOOC and Soyea is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding CNOOC Limited and Soyea Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soyea Technology 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 Soyea Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soyea Technology has no effect on the direction of CNOOC i.e., CNOOC and Soyea Technology go up and down completely randomly.
Pair Corralation between CNOOC and Soyea Technology
Assuming the 90 days trading horizon CNOOC Limited is expected to generate 0.74 times more return on investment than Soyea Technology. However, CNOOC Limited is 1.35 times less risky than Soyea Technology. It trades about 0.08 of its potential returns per unit of risk. Soyea Technology Co is currently generating about -0.04 per unit of risk. 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNOOC Limited vs. Soyea Technology Co
Performance |
| Timeline |
| CNOOC Limited |
| Soyea Technology |
CNOOC and Soyea Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNOOC and Soyea Technology
The main advantage of trading using opposite CNOOC and Soyea Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNOOC position performs unexpectedly, Soyea Technology 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 Soyea Technology will offset losses from the drop in Soyea Technology's long position.| CNOOC vs. Tianjin Ruixin Technology | CNOOC vs. Zhongzhu Medical Holdings | CNOOC vs. Eyebright Medical Technology | CNOOC vs. Kingsignal Technology Co |
| Soyea Technology vs. Ningxia Younglight Chemicals | Soyea Technology vs. Xinya Electronic Co | Soyea Technology vs. Xinxiang Chemical Fiber | Soyea Technology vs. Maoming Petro Chemical Shihua |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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