Correlation Between CNOOC and China Mobile
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By analyzing existing cross correlation between CNOOC Limited and China Mobile Limited, you can compare the effects of market volatilities on CNOOC and China Mobile 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 China Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNOOC and China Mobile.
Diversification Opportunities for CNOOC and China Mobile
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CNOOC and China is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding CNOOC Limited and China Mobile Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Mobile Limited 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 China Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Mobile Limited has no effect on the direction of CNOOC i.e., CNOOC and China Mobile go up and down completely randomly.
Pair Corralation between CNOOC and China Mobile
Assuming the 90 days trading horizon CNOOC Limited is expected to under-perform the China Mobile. In addition to that, CNOOC is 1.1 times more volatile than China Mobile Limited. It trades about -0.22 of its total potential returns per unit of risk. China Mobile Limited is currently generating about -0.02 per unit of volatility. If you would invest 10,435 in China Mobile Limited on August 24, 2024 and sell it today you would lose (78.00) from holding China Mobile Limited or give up 0.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNOOC Limited vs. China Mobile Limited
Performance |
| Timeline |
| CNOOC Limited |
| China Mobile Limited |
CNOOC and China Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNOOC and China Mobile
The main advantage of trading using opposite CNOOC and China Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNOOC position performs unexpectedly, China Mobile 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 China Mobile will offset losses from the drop in China Mobile's long position.| CNOOC vs. Haima Automobile Group | CNOOC vs. Keda Clean Energy | CNOOC vs. Chongqing Changan Automobile | CNOOC vs. Guangzhou Haige Communications |
| China Mobile vs. Fuzhou Rockchip Electronics | China Mobile vs. Jiangsu Yueda Investment | China Mobile vs. Offshore Oil Engineering | China Mobile vs. Hunan Investment Group |
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 Stocks Directory module to find actively traded stocks across global markets.
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