Correlation Between CNOOC and Gansu Huangtai
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By analyzing existing cross correlation between CNOOC Limited and Gansu Huangtai Wine marketing, you can compare the effects of market volatilities on CNOOC and Gansu Huangtai 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 Gansu Huangtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNOOC and Gansu Huangtai.
Diversification Opportunities for CNOOC and Gansu Huangtai
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between CNOOC and Gansu is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding CNOOC Limited and Gansu Huangtai Wine marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Huangtai Wine 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 Gansu Huangtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Huangtai Wine has no effect on the direction of CNOOC i.e., CNOOC and Gansu Huangtai go up and down completely randomly.
Pair Corralation between CNOOC and Gansu Huangtai
Assuming the 90 days trading horizon CNOOC Limited is expected to generate 0.6 times more return on investment than Gansu Huangtai. However, CNOOC Limited is 1.66 times less risky than Gansu Huangtai. It trades about 0.08 of its potential returns per unit of risk. Gansu Huangtai Wine marketing is currently generating about 0.0 per unit of risk. If you would invest 1,450 in CNOOC Limited on October 13, 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. Gansu Huangtai Wine marketing
Performance |
| Timeline |
| CNOOC Limited |
| Gansu Huangtai Wine |
CNOOC and Gansu Huangtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNOOC and Gansu Huangtai
The main advantage of trading using opposite CNOOC and Gansu Huangtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNOOC position performs unexpectedly, Gansu Huangtai 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 Gansu Huangtai will offset losses from the drop in Gansu Huangtai's long position.| CNOOC vs. Ningbo Tech Bank Co | CNOOC vs. Guosheng Financial Holding | CNOOC vs. China Minmetals Rare | CNOOC vs. GRG Banking Equipment |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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