Correlation Between CNOOC and Harbin Air
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By analyzing existing cross correlation between CNOOC Limited and Harbin Air Conditioning, you can compare the effects of market volatilities on CNOOC and Harbin Air 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 Harbin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNOOC and Harbin Air.
Diversification Opportunities for CNOOC and Harbin Air
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CNOOC and Harbin is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding CNOOC Limited and Harbin Air Conditioning in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbin Air Conditioning 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 Harbin Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbin Air Conditioning has no effect on the direction of CNOOC i.e., CNOOC and Harbin Air go up and down completely randomly.
Pair Corralation between CNOOC and Harbin Air
Assuming the 90 days trading horizon CNOOC Limited is expected to generate 0.74 times more return on investment than Harbin Air. However, CNOOC Limited is 1.35 times less risky than Harbin Air. It trades about 0.08 of its potential returns per unit of risk. Harbin Air Conditioning is currently generating about 0.0 per unit of risk. If you would invest 1,826 in CNOOC Limited on September 14, 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNOOC Limited vs. Harbin Air Conditioning
Performance |
| Timeline |
| CNOOC Limited |
| Harbin Air Conditioning |
CNOOC and Harbin Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNOOC and Harbin Air
The main advantage of trading using opposite CNOOC and Harbin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNOOC position performs unexpectedly, Harbin Air 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 Harbin Air will offset losses from the drop in Harbin Air's long position.| CNOOC vs. Kontour Medical Technology | CNOOC vs. Jinling Hotel Corp | CNOOC vs. CareRay Digital Medical | CNOOC vs. Allmed Medical Products |
| Harbin Air vs. PetroChina Co Ltd | Harbin Air vs. China Mobile Limited | Harbin Air vs. CNOOC Limited | Harbin Air 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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