Correlation Between CNOOC and Zhejiang Weixing
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By analyzing existing cross correlation between CNOOC Limited and Zhejiang Weixing New, you can compare the effects of market volatilities on CNOOC and Zhejiang Weixing 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 Zhejiang Weixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNOOC and Zhejiang Weixing.
Diversification Opportunities for CNOOC and Zhejiang Weixing
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CNOOC and Zhejiang is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding CNOOC Limited and Zhejiang Weixing New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Weixing New 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 Zhejiang Weixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Weixing New has no effect on the direction of CNOOC i.e., CNOOC and Zhejiang Weixing go up and down completely randomly.
Pair Corralation between CNOOC and Zhejiang Weixing
Assuming the 90 days trading horizon CNOOC Limited is expected to generate 0.88 times more return on investment than Zhejiang Weixing. However, CNOOC Limited is 1.13 times less risky than Zhejiang Weixing. It trades about 0.08 of its potential returns per unit of risk. Zhejiang Weixing New is currently generating about 0.0 per unit of risk. If you would invest 1,919 in CNOOC Limited on September 19, 2024 and sell it today you would earn a total of 852.00 from holding CNOOC Limited or generate 44.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
CNOOC Limited vs. Zhejiang Weixing New
Performance |
| Timeline |
| CNOOC Limited |
| Zhejiang Weixing New |
CNOOC and Zhejiang Weixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNOOC and Zhejiang Weixing
The main advantage of trading using opposite CNOOC and Zhejiang Weixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNOOC position performs unexpectedly, Zhejiang Weixing 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 Zhejiang Weixing will offset losses from the drop in Zhejiang Weixing's long position.| CNOOC vs. Zhejiang Kingland Pipeline | CNOOC vs. BYD Co Ltd | CNOOC vs. Shaanxi Beiyuan Chemical | CNOOC vs. Zoy Home Furnishing |
| Zhejiang Weixing vs. PetroChina Co Ltd | Zhejiang Weixing vs. China Mobile Limited | Zhejiang Weixing vs. CNOOC Limited | Zhejiang Weixing vs. Ping An Insurance |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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