Correlation Between CNOOC and Shanghai Shuixing
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By analyzing existing cross correlation between CNOOC Limited and Shanghai Shuixing Home, you can compare the effects of market volatilities on CNOOC and Shanghai Shuixing 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 Shanghai Shuixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNOOC and Shanghai Shuixing.
Diversification Opportunities for CNOOC and Shanghai Shuixing
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CNOOC and Shanghai is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding CNOOC Limited and Shanghai Shuixing Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shuixing Home 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 Shanghai Shuixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shuixing Home has no effect on the direction of CNOOC i.e., CNOOC and Shanghai Shuixing go up and down completely randomly.
Pair Corralation between CNOOC and Shanghai Shuixing
Assuming the 90 days trading horizon CNOOC Limited is expected to generate 0.52 times more return on investment than Shanghai Shuixing. However, CNOOC Limited is 1.93 times less risky than Shanghai Shuixing. It trades about -0.19 of its potential returns per unit of risk. Shanghai Shuixing Home is currently generating about -0.15 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNOOC Limited vs. Shanghai Shuixing Home
Performance |
| Timeline |
| CNOOC Limited |
| Shanghai Shuixing Home |
CNOOC and Shanghai Shuixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNOOC and Shanghai Shuixing
The main advantage of trading using opposite CNOOC and Shanghai Shuixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNOOC position performs unexpectedly, Shanghai Shuixing 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 Shanghai Shuixing will offset losses from the drop in Shanghai Shuixing's long position.| CNOOC vs. Panda Dairy Corp | CNOOC vs. Ligao Foods CoLtd | CNOOC vs. Xinjiang Baodi Mining | CNOOC vs. Xiangpiaopiao Food Co |
| Shanghai Shuixing vs. Innovative Medical Management | Shanghai Shuixing vs. Huaxia Fund Management | Shanghai Shuixing vs. Guangdong Transtek Medical | Shanghai Shuixing vs. Qingdao Haier Biomedical |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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