Correlation Between CNOOC and Hangzhou Weiguang
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By analyzing existing cross correlation between CNOOC Limited and Hangzhou Weiguang Electronic, you can compare the effects of market volatilities on CNOOC and Hangzhou Weiguang 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 Hangzhou Weiguang. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNOOC and Hangzhou Weiguang.
Diversification Opportunities for CNOOC and Hangzhou Weiguang
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between CNOOC and Hangzhou is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding CNOOC Limited and Hangzhou Weiguang Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Weiguang 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 Hangzhou Weiguang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Weiguang has no effect on the direction of CNOOC i.e., CNOOC and Hangzhou Weiguang go up and down completely randomly.
Pair Corralation between CNOOC and Hangzhou Weiguang
Assuming the 90 days trading horizon CNOOC Limited is expected to under-perform the Hangzhou Weiguang. But the stock apears to be less risky and, when comparing its historical volatility, CNOOC Limited is 1.65 times less risky than Hangzhou Weiguang. The stock trades about -0.13 of its potential returns per unit of risk. The Hangzhou Weiguang Electronic is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 2,054 in Hangzhou Weiguang Electronic on September 13, 2024 and sell it today you would earn a total of 579.00 from holding Hangzhou Weiguang Electronic or generate 28.19% 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. Hangzhou Weiguang Electronic
Performance |
| Timeline |
| CNOOC Limited |
| Hangzhou Weiguang |
CNOOC and Hangzhou Weiguang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNOOC and Hangzhou Weiguang
The main advantage of trading using opposite CNOOC and Hangzhou Weiguang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNOOC position performs unexpectedly, Hangzhou Weiguang 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 Hangzhou Weiguang will offset losses from the drop in Hangzhou Weiguang's long position.| CNOOC vs. Hang Xiao Steel | CNOOC vs. Dongjiang Environmental Co | CNOOC vs. China World Trade | CNOOC vs. Shandong Iron and |
| Hangzhou Weiguang vs. PetroChina Co Ltd | Hangzhou Weiguang vs. China Mobile Limited | Hangzhou Weiguang vs. CNOOC Limited | Hangzhou Weiguang 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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