Correlation Between CNOOC and Bank of China
Specify exactly 2 symbols:
By analyzing existing cross correlation between CNOOC Limited and Bank of China, you can compare the effects of market volatilities on CNOOC and Bank of China 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 Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNOOC and Bank of China.
Diversification Opportunities for CNOOC and Bank of China
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CNOOC and Bank is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding CNOOC Limited and Bank of China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of China 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 Bank of China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of China has no effect on the direction of CNOOC i.e., CNOOC and Bank of China go up and down completely randomly.
Pair Corralation between CNOOC and Bank of China
Assuming the 90 days trading horizon CNOOC Limited is expected to under-perform the Bank of China. But the stock apears to be less risky and, when comparing its historical volatility, CNOOC Limited is 1.07 times less risky than Bank of China. The stock trades about -0.16 of its potential returns per unit of risk. The Bank of China is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 539.00 in Bank of China on November 5, 2024 and sell it today you would earn a total of 6.00 from holding Bank of China or generate 1.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNOOC Limited vs. Bank of China
Performance |
| Timeline |
| CNOOC Limited |
| Bank of China |
CNOOC and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNOOC and Bank of China
The main advantage of trading using opposite CNOOC and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNOOC position performs unexpectedly, Bank of China 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 Bank of China will offset losses from the drop in Bank of China's long position.| CNOOC vs. Longmaster Information Tech | CNOOC vs. Emdoor Information Co | CNOOC vs. Shenzhen Zqgame | CNOOC vs. Guangdong TianYiMa Information |
| Bank of China vs. Rising Nonferrous Metals | Bank of China vs. ZYF Lopsking Aluminum | Bank of China vs. Ye Chiu Metal | Bank of China vs. Tongling Nonferrous Metals |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stocks Directory Find actively traded stocks across global markets |