Correlation Between CNOOC and PetroChina
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By analyzing existing cross correlation between CNOOC Limited and PetroChina Co Ltd, you can compare the effects of market volatilities on CNOOC and PetroChina 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 PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNOOC and PetroChina.
Diversification Opportunities for CNOOC and PetroChina
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CNOOC and PetroChina is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding CNOOC Limited and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina 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 PetroChina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PetroChina has no effect on the direction of CNOOC i.e., CNOOC and PetroChina go up and down completely randomly.
Pair Corralation between CNOOC and PetroChina
Assuming the 90 days trading horizon CNOOC Limited is expected to generate 0.92 times more return on investment than PetroChina. However, CNOOC Limited is 1.09 times less risky than PetroChina. It trades about -0.16 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.25 per unit of risk. If you would invest 2,865 in CNOOC Limited on November 5, 2024 and sell it today you would lose (114.00) from holding CNOOC Limited or give up 3.98% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
CNOOC Limited vs. PetroChina Co Ltd
Performance |
Timeline |
CNOOC Limited |
PetroChina |
CNOOC and PetroChina Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CNOOC and PetroChina
The main advantage of trading using opposite CNOOC and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNOOC position performs unexpectedly, PetroChina 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 PetroChina will offset losses from the drop in PetroChina's long position.CNOOC vs. Longmaster Information Tech | CNOOC vs. Emdoor Information Co | CNOOC vs. Shenzhen Zqgame | CNOOC vs. Guangdong TianYiMa Information |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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