Correlation Between CNOOC and Industrial Bank
Specify exactly 2 symbols:
By analyzing existing cross correlation between CNOOC Limited and Industrial Bank Co, you can compare the effects of market volatilities on CNOOC and Industrial Bank 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 Industrial Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNOOC and Industrial Bank.
Diversification Opportunities for CNOOC and Industrial Bank
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CNOOC and Industrial is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding CNOOC Limited and Industrial Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Bank 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 Industrial Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial Bank has no effect on the direction of CNOOC i.e., CNOOC and Industrial Bank go up and down completely randomly.
Pair Corralation between CNOOC and Industrial Bank
Assuming the 90 days trading horizon CNOOC Limited is expected to generate 0.97 times more return on investment than Industrial Bank. However, CNOOC Limited is 1.04 times less risky than Industrial Bank. It trades about -0.15 of its potential returns per unit of risk. Industrial Bank Co is currently generating about -0.18 per unit of risk. If you would invest 2,739 in CNOOC Limited on August 29, 2024 and sell it today you would lose (127.00) from holding CNOOC Limited or give up 4.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNOOC Limited vs. Industrial Bank Co
Performance |
| Timeline |
| CNOOC Limited |
| Industrial Bank |
CNOOC and Industrial Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNOOC and Industrial Bank
The main advantage of trading using opposite CNOOC and Industrial Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNOOC position performs unexpectedly, Industrial Bank 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 Industrial Bank will offset losses from the drop in Industrial Bank's long position.| CNOOC vs. Hainan Mining Co | CNOOC vs. Uroica Mining Safety | CNOOC vs. Guocheng Mining Co | CNOOC vs. Jinhe Biotechnology Co |
| Industrial Bank vs. Bomin Electronics Co | Industrial Bank vs. Zhangjiagang Freetrade Science | Industrial Bank vs. Nantong Haixing Electronics | Industrial Bank vs. TongFu Microelectronics Co |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |