Correlation Between CNOOC and Wuhan Hvsen
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By analyzing existing cross correlation between CNOOC Limited and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on CNOOC and Wuhan Hvsen 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 Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNOOC and Wuhan Hvsen.
Diversification Opportunities for CNOOC and Wuhan Hvsen
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between CNOOC and Wuhan is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding CNOOC Limited and Wuhan Hvsen Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Hvsen Biotechnology 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 Wuhan Hvsen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Hvsen Biotechnology has no effect on the direction of CNOOC i.e., CNOOC and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between CNOOC and Wuhan Hvsen
Assuming the 90 days trading horizon CNOOC Limited is expected to under-perform the Wuhan Hvsen. But the stock apears to be less risky and, when comparing its historical volatility, CNOOC Limited is 2.26 times less risky than Wuhan Hvsen. The stock trades about -0.08 of its potential returns per unit of risk. The Wuhan Hvsen Biotechnology is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1,100 in Wuhan Hvsen Biotechnology on September 3, 2024 and sell it today you would earn a total of 149.00 from holding Wuhan Hvsen Biotechnology or generate 13.55% 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. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| CNOOC Limited |
| Wuhan Hvsen Biotechnology |
CNOOC and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNOOC and Wuhan Hvsen
The main advantage of trading using opposite CNOOC and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNOOC position performs unexpectedly, Wuhan Hvsen 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 Wuhan Hvsen will offset losses from the drop in Wuhan Hvsen's long position.| CNOOC vs. HeBei Jinniu Chemical | CNOOC vs. Sinofibers Technology Co | CNOOC vs. Shaanxi Beiyuan Chemical | CNOOC vs. Guangzhou KingTeller Technology |
| Wuhan Hvsen vs. Chengdu Kanghua Biological | Wuhan Hvsen vs. Beijing Wantai Biological | Wuhan Hvsen vs. Suzhou Novoprotein Scientific | Wuhan Hvsen vs. Aluminum Corp of |
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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