Correlation Between CNOOC and Anhui Xinhua
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By analyzing existing cross correlation between CNOOC Limited and Anhui Xinhua Media, you can compare the effects of market volatilities on CNOOC and Anhui Xinhua 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 Anhui Xinhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNOOC and Anhui Xinhua.
Diversification Opportunities for CNOOC and Anhui Xinhua
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CNOOC and Anhui is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding CNOOC Limited and Anhui Xinhua Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Xinhua Media 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 Anhui Xinhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Xinhua Media has no effect on the direction of CNOOC i.e., CNOOC and Anhui Xinhua go up and down completely randomly.
Pair Corralation between CNOOC and Anhui Xinhua
Assuming the 90 days trading horizon CNOOC Limited is expected to generate 0.77 times more return on investment than Anhui Xinhua. However, CNOOC Limited is 1.3 times less risky than Anhui Xinhua. It trades about -0.19 of its potential returns per unit of risk. Anhui Xinhua Media is currently generating about -0.23 per unit of risk. If you would invest 2,888 in CNOOC Limited on October 28, 2024 and sell it today you would lose (166.00) from holding CNOOC Limited or give up 5.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNOOC Limited vs. Anhui Xinhua Media
Performance |
| Timeline |
| CNOOC Limited |
| Anhui Xinhua Media |
CNOOC and Anhui Xinhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNOOC and Anhui Xinhua
The main advantage of trading using opposite CNOOC and Anhui Xinhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNOOC position performs unexpectedly, Anhui Xinhua 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 Anhui Xinhua will offset losses from the drop in Anhui Xinhua's long position.| CNOOC vs. Tianjin Hi Tech Development | CNOOC vs. Hangzhou Gisway Information | CNOOC vs. Dawning Information Industry | CNOOC vs. Sichuan Jinshi Technology |
| Anhui Xinhua vs. PetroChina Co Ltd | Anhui Xinhua vs. China Mobile Limited | Anhui Xinhua vs. CNOOC Limited | Anhui Xinhua 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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