Correlation Between CNOOC and Shanghai Rongtai
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By analyzing existing cross correlation between CNOOC Limited and Shanghai Rongtai Health, you can compare the effects of market volatilities on CNOOC and Shanghai Rongtai 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 Rongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNOOC and Shanghai Rongtai.
Diversification Opportunities for CNOOC and Shanghai Rongtai
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between CNOOC and Shanghai is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding CNOOC Limited and Shanghai Rongtai Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rongtai Health 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 Rongtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rongtai Health has no effect on the direction of CNOOC i.e., CNOOC and Shanghai Rongtai go up and down completely randomly.
Pair Corralation between CNOOC and Shanghai Rongtai
Assuming the 90 days trading horizon CNOOC Limited is expected to generate 0.51 times more return on investment than Shanghai Rongtai. However, CNOOC Limited is 1.94 times less risky than Shanghai Rongtai. It trades about 0.28 of its potential returns per unit of risk. Shanghai Rongtai Health is currently generating about 0.07 per unit of risk. If you would invest 2,650 in CNOOC Limited on September 26, 2024 and sell it today you would earn a total of 225.00 from holding CNOOC Limited or generate 8.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNOOC Limited vs. Shanghai Rongtai Health
Performance |
| Timeline |
| CNOOC Limited |
| Shanghai Rongtai Health |
CNOOC and Shanghai Rongtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNOOC and Shanghai Rongtai
The main advantage of trading using opposite CNOOC and Shanghai Rongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNOOC position performs unexpectedly, Shanghai Rongtai 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 Rongtai will offset losses from the drop in Shanghai Rongtai's long position.| CNOOC vs. Jiangxi Hengda Hi Tech | CNOOC vs. Guangdong Shenglu Telecommunication | CNOOC vs. Xiangyang Automobile Bearing | CNOOC vs. Guangzhou Automobile Group |
| Shanghai Rongtai vs. PetroChina Co Ltd | Shanghai Rongtai vs. China Mobile Limited | Shanghai Rongtai vs. CNOOC Limited | Shanghai Rongtai 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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