Correlation Between CNOOC and Der International
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By analyzing existing cross correlation between CNOOC Limited and Der International Home, you can compare the effects of market volatilities on CNOOC and Der International 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 Der International. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNOOC and Der International.
Diversification Opportunities for CNOOC and Der International
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CNOOC and Der is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding CNOOC Limited and Der International Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Der International Home 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 Der International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Der International Home has no effect on the direction of CNOOC i.e., CNOOC and Der International go up and down completely randomly.
Pair Corralation between CNOOC and Der International
Assuming the 90 days trading horizon CNOOC Limited is expected to generate 0.66 times more return on investment than Der International. However, CNOOC Limited is 1.51 times less risky than Der International. It trades about 0.08 of its potential returns per unit of risk. Der International Home is currently generating about -0.01 per unit of risk. If you would invest 1,826 in CNOOC Limited on September 15, 2024 and sell it today you would earn a total of 877.00 from holding CNOOC Limited or generate 48.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNOOC Limited vs. Der International Home
Performance |
| Timeline |
| CNOOC Limited |
| Der International Home |
CNOOC and Der International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNOOC and Der International
The main advantage of trading using opposite CNOOC and Der International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNOOC position performs unexpectedly, Der International 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 Der International will offset losses from the drop in Der International's long position.| CNOOC vs. Zhejiang Kingland Pipeline | CNOOC vs. BYD Co Ltd | CNOOC vs. Shaanxi Beiyuan Chemical | CNOOC vs. Zoy Home Furnishing |
| Der International vs. PetroChina Co Ltd | Der International vs. China Mobile Limited | Der International vs. CNOOC Limited | Der International 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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