Correlation Between CNOOC and China Galaxy
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By analyzing existing cross correlation between CNOOC Limited and China Galaxy Securities, you can compare the effects of market volatilities on CNOOC and China Galaxy 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 Galaxy. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNOOC and China Galaxy.
Diversification Opportunities for CNOOC and China Galaxy
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CNOOC and China is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding CNOOC Limited and China Galaxy Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Galaxy Securities 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 Galaxy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Galaxy Securities has no effect on the direction of CNOOC i.e., CNOOC and China Galaxy go up and down completely randomly.
Pair Corralation between CNOOC and China Galaxy
Assuming the 90 days trading horizon CNOOC Limited is expected to generate 0.76 times more return on investment than China Galaxy. However, CNOOC Limited is 1.32 times less risky than China Galaxy. It trades about 0.08 of its potential returns per unit of risk. China Galaxy Securities is currently generating about 0.04 per unit of risk. If you would invest 1,450 in CNOOC Limited on October 16, 2024 and sell it today you would earn a total of 1,433 from holding CNOOC Limited or generate 98.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNOOC Limited vs. China Galaxy Securities
Performance |
| Timeline |
| CNOOC Limited |
| China Galaxy Securities |
CNOOC and China Galaxy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNOOC and China Galaxy
The main advantage of trading using opposite CNOOC and China Galaxy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNOOC position performs unexpectedly, China Galaxy 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 Galaxy will offset losses from the drop in China Galaxy's long position.| CNOOC vs. Tianjin Ruixin Technology | CNOOC vs. Zhongzhu Medical Holdings | CNOOC vs. Eyebright Medical Technology | CNOOC vs. Kingsignal Technology Co |
| China Galaxy vs. Ping An Insurance | China Galaxy vs. Epoxy Base Electronic | China Galaxy vs. Ningbo Kangqiang Electronics | China Galaxy vs. Jiangsu Financial Leasing |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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